Question
The 14% bonds payable of Coronado Industries had a carrying amount of $4120000 on December 31, 2020. The bonds, which had a face value of
The 14% bonds payable of Coronado Industries had a carrying amount of $4120000 on December 31, 2020. The bonds, which had a face value of $3960000, were issued at a premium to yield 12%. Coronado 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, Coronado retired the bonds at 104 plus accrued interest. The loss on retirement, ignoring taxes, is
|
| $0. |
|
| $28400. |
|
| $46000. |
|
| $158400. |
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Not For Profit Entities Audit And Accounting Guide
Authors: AICPA
1st Edition
1937351971, 978-1937351977
