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On January 1, 2020, Ishikawa Inc. issued 5675,000 of 9 percent, five-year bonds payable at 107. Ishikawa has extra cash and wishes to retire all
On January 1, 2020, Ishikawa Inc. issued 5675,000 of 9 percent, five-year bonds payable at 107. Ishikawa has extra cash and wishes to retire all of the bonds payable on January 1, 2021, immediately after making the second semi-annual interest payment. Ishikawa uses the straight-ine method of amortization. To retire the bonds, Ishikawa pays the market price of 97 a. What is Ishlawa's carrying amount of the bonds payable on the retirement date? How much cash must whawa pay to retire the bonds payable? e. Compute ishikawa's gain or loss on the retirement of the bonds payable a What is inhawa's carrying amount of the bonda payable on the retirement date? The carrying amount of the bonds payable on the retirement date is $722250 b. How much cash mastika pay to retire the bonds payatie? To retire te bondelkaa must pay c. Compute kaw's gain or loss on the retirement of the bonds payable Ishikawa's on the retirement of the bonds payabios
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