Scenic Gondola Inc. ( SGI ) purchased a large tract of land in the Okanagan Valley for
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Scenic Gondola Inc. SGI purchased a large tract of land in the Okanagan Valley for development as a one stop tourist destination with a metre sightseeing Gondola. To fund this purchase. SGI issued the following year bonds on January
Number of bonds
Face value per bond
$
Coupon rate annual ratel
Semi annual coupon payment dates
June
December
Priced to yield annual rate
On January SGI called of the bonds paying, and retired them. You can assume that SGi reports under IFRS and uses the effective interest rate method of accounting for bonds payable.
What is the amount of the gain enter as positivel or loss enter as negative that SGI will record on the reacquisition of the bonds?
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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