On January 1, 2019, F Corporation issued 2,800 of its 9%, $1,000 bonds for $2,884,000. These bonds were to mature on January 1, 2029, but were On January 1, 2024, an investor paid $286,000 for bonds with a face amount of $345,000. The contract rate of interest is 8% while the current mark callable at 101 any time after December 31, 2022. Interest was payable semiannually on July 1 and January 1. On July 1, 2024, F called all of the bonds and rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2025 (assume annual interest retired them. The bond premium was amortized on a straight-line basis. Before income taxes, F Corporation's gain or loss in 2024 on this early payments and amortization)? extinguishment of debt was: Multiple Choice Multiple Choice $26,894 $18,200 gain. $28,600 O $28,000 loss . $28,850 $9,800 gain. $70,000 gain. O & On January 1, 2024, Solo Incorporated issued 1,600 of its 11%, $1,000 bonds at 98.3. Interest is payable semiannually on January 1 and July 1. The bonds On June 30, 2024, L. N. Bean issued $14 million of its 8% bonds for $12 million. The bonds were priced to yield 10%. Interest is payable semiannually on mature on January 1, 2034. Solo paid $54,000 in bond issue costs. Solo uses straight-line amortization. December 31, 2024? December 31 and July 1. If the effective interest method is used, how much bond interest expense should the company report for the 6 months ended What is the carrying value of the bonds reported in the December 31, 2024, balance sheet? Multiple Choice Multiple Choice O $750,000 O $2,560,000 O $630,000 $1,526,920 $675,000 $2,614,000 O $600,000 Nickel Incorporated bought $200,000 of 3-year, 7% bonds as an investment on December 31, 2023 for $214,000. The investment receives interest On June 30, 2024, K Company had outstanding 9%, $15,000,000 face value bonds maturing on June 30, 2029. Interest is payable semiannually every annually and Nickel uses straight-line amortization. On May 1, 2024, the issuer retired $40,000 of the bonds at 110. As a result of the retirement, Nickel June 30 and December 31. On June 30, 2024, after amortization was recorded for the period, the unamortized bond premium was $65,000. On that will report a: date, k acquired all its outstanding bonds on the open market at 99 and retired them. On June 30, 2024, what amount should K Company recognize as gain on redemption of bonds before income taxes? Note: Do not round intermediate calculations and round your final answer to nearest whole dollar. Multiple Choice Multiple Choice $50,000 $1,511 gair $215,000 O $8,000 gain. $300,000 O $43,067 loss. $65,000 $6,000 loss
