On January 1. 1915, Flint Corporation issued $5,320,000 of 10% bonds at 102 due December 31,...

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On January 1. 1915, Flint Corporation issued $5,320,000 of 10% bonds at 102 due December 31, 2024. Legal and other costs of $85,000 were incurred in connection with the issue. Interest on the bonds is payable annually each December 31. The $85.000 issue costs are being deferred and amortized on a straight-line basis over the 10-year term of the bonds. The premium on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "interest method") The bonds are callable at 105 (i.e... at 105 % of face amount), and on January 2, 2020, Flint called one-half of the bonds and retired them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Flint as a result of retiring the $2,660,000 of bonds in 2020 Loss on redemption $ 591920 On January 1. 1915, Flint Corporation issued $5,320,000 of 10% bonds at 102 due December 31, 2024. Legal and other costs of $85,000 were incurred in connection with the issue. Interest on the bonds is payable annually each December 31. The $85.000 issue costs are being deferred and amortized on a straight-line basis over the 10-year term of the bonds. The premium on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "interest method") The bonds are callable at 105 (i.e... at 105 % of face amount), and on January 2, 2020, Flint called one-half of the bonds and retired them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Flint as a result of retiring the $2,660,000 of bonds in 2020 Loss on redemption $ 591920