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On January 1,2019 , TSLA Corporation issued 2,300 of its 10%,$1,000 bonds for $2,386,000 . These bonds were to mature on January 1, 2029, but

On January 1,2019 , TSLA Corporation issued 2,300 of its

10%,$1,000

bonds for

$2,386,000

. These bonds were to mature on January 1, 2029, but were callable at 101 any time after December 31, 2022. Interest was payable : ally on July 1 and January 1.\ On July 1, 2024, TSLA called all of the bonds au retired them. The bond premium was amortized on a straight-line basis.\ Before income taxes, TSLA Corporation's gain or loss in 2024 on this early extinguishment of debt was?\

$66,000

gain.\

$15,700

gain.\

$24,300

gain.\

$23,000

loss.

image text in transcribed
On January 1,2019 , TSLA Corporation issued 2,300 of its 10%,$1,000 bonds for $2,386,000. These bonds were to mature on January 1, 2029, but were callable at 101 any time after December 31, 2022. Interest was payable s ally on July 1 and January 1. On July 1, 2024, TSLA called all of the bonds awu ietired them. The bond premium was amortized on a straight-line basis. Before income taxes, TSLA Corporation's gain or loss in 2024 on this early extinguishment of debt was? $66,000 gain. $15,700 gain. $24,300 gain. $23,000 loss

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