The December 31, 2004, balance sheet of Dodge Corporation includes the following items: 9% bonds payable due

Question:

The December 31, 2004, balance sheet of Dodge Corporation includes the following items:

9% bonds payable due December 31, 2013 ..................$1,500,000

Unamortized premium on bonds payable .............................40,500

The bonds were issued on December 31, 2003, at 103, with interest payable on July 1 and December 31 of each year. Dodge uses straight-line amortization. On March 1, 2005, Dodge retired $560,000 of these bonds at 98 plus accrued interest. What amount should Dodge record as a gain on retirement of these bonds

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...