contestada

Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000. If the issuing corporation redeems the bonds at 103, what is the amount of gain or loss on redemption

Respuesta :

Parrain

Based on the balance of Bonds Payable and Premium on Bonds, the amount of loss on redemption is $17,000.

How much does the company gain or lose on redemption?

The cash the company paid is:

= 900,000 x 103/100

= $927,000

The gain (loss) on redemption is:

= Bond carrying value - Cash paid

= (900,000 + 10,000) - 927,000

= -$17,000

Find out more on gain (loss) on redemption at https://brainly.com/question/7158291

#SPJ1

Otras preguntas