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Question Completion Status: QUESTION 5 On April 30, 2016, one year before maturity, Blue Peaches, Inc. retired $300,000 of 8% bonds payable at 103. The
Question Completion Status: QUESTION 5 On April 30, 2016, one year before maturity, Blue Peaches, Inc. retired $300,000 of 8% bonds payable at 103. The book value of the bonds on April 30 was $289,200.Bond interest was last paid on April 30, 2016. What is the gain or loss on the retirement of the bonds? A $30,600 gain B. $19,800 loss C. $24,000 loss D. $10,800 gain QUESTION 6 Howard Company issues bonds with a par value of $900,000 on their issue date. The bonds mature in 5 years and pay 6% annual interest in semiannual payments. On the issue date, the market rate of interest (annual) is 8%. Compute the price of the bonds on their issue date. (If PV tables are used, select the closest answer from the options provided.). A. 5720,343 B. 5827,002 C. 5838,146 D. 5786,305
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