Testbank Multiple Choice Question 93

The 14% bonds payable of Waterway Industries had a carrying amount of $4300000 on December 31, 2020. The bonds, which had a face value of $4140000, were issued at a premium to yield 12%. Waterway uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2021, several years before their maturity, Waterway retired the bonds at 104 plus accrued interest. The loss on retirement, ignoring taxes, is

$165600.

$0.

$37400.

$55000.

Testbank Multiple Choice Question 99

Cullumber Companys 12/31/21 balance sheet reports assets of $7120000 and liabilities of $2920000. All of Cullumbers assets book values approximate their fair value, except for land, which has a fair value that is $432000 greater than its book value. On 12/31/21, Blossom Corporation paid $7261000 to acquire Cullumber. What amount of goodwill should Blossom record as a result of this purchase?

$2629000

$3061000

$0

$141000