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Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from Issuance until maturity: Increase
Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from Issuance until maturity: Increase in Interest Carrying Carrying Date 01/01/2021 06/30/2021 Cash Paid Expense Value Value $332,235 $14,000 $16,612 $2,612 334,847 12/31/2021 14,000 16,742 2,742 337,589 06/30/2022 14,000 16,879 2,879 340,468 12/31/2022 14,000 17,023 3,023 343,491 06/30/2023 14,000 17,175 3,175 346,666 12/31/2023 14,000 17,334 3,334 350,000 THA buys back the bonds for $335,329 immediately after the interest payment on 12/31/2021 and retires them. What gain or loss, if any, would THA record on this date? Multiple Choice No gain or loss. $14,671 gain.
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