![rlumanlan549](/avatars/42650.jpg)
rlumanlan549
28.08.2019 •
Business
On february 1, 2015, davis corporation issued 12%, $1,000,000 par, 10-year bonds for $1,117,000. davis reacquired all of these bonds at 102% of par, plus accrued interest, on may 1, 2018, and retired them. the unamortized bond premium on that date was $78,000. required: before income taxes, what was davis’s gain or loss on the bond extinguishment?
Solved
Show answers
More tips
- F Food and Cooking How to salt lard?...
- W Work and Career Can Skill Alone Make You a Professional?...
- C Computers and Internet How to Top Up Your Skype Account Without Losing Money?...
- P Philosophy Unidentified Flying Object - What is the Nature of this Phenomenon?...
- F Family and Home Protect Your Home or Apartment from Pesky Ants...
- O Other What is a Disk Emulsifier and How Does it Work?...
- F Family and Home What does a newborn need?...
- F Family and Home Choosing the Right Car Seat for Your Child: Tips and Recommendations...
- F Food and Cooking How to Get Reconfirmation of Registration?...
Answers on questions: Business
- B Business If a harmful substance is used in a workplace, the company must provide what informational document to employees? A. Material safety data sheet B. Ergonomics checklist C....
- B Business Please help me with this question...
- B Business Three basic strategies exist through which firms can earn differentiation and sustainable competitive advantage. One such strategy is customer intimacy. Customer intimacy...
- B Business The external environment is said to be when there are few competitors, little activity from outside groups, and minimal technological breakthroughs....
- B Business Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of....
- B Business Kara realized that her school project would require her to generate new ideas in an unconventional way. in other words, kara s project requires thinking....
- B Business How does panera bread attract customers? why do customers not mind paying more for panera bread s food?...
- H History Lesson 7 Review Directions: For each question, present the answer in complete sentences with supporting information from the Lesson. Do not copy and paste from the Lessons...
- H History Which statements describe the Persian Empire? Choose all correct answers. The Persians conquered Greece in a series of devastating wars. Darius I made use of good ideas from...
- P Physics OO0is the sure test for magnetism....
Ответ:
gain on the bond extinguishment 58,000
Explanation:
Carrying value of the bonds at redemption:
face value + unamortized premium on bonds
1,000,000 + 78,000 = 1,078,000
are retired at 102%
1,000,000 x 102% = 1,020,000
Gain on the bond extinguishment
carrying value - retired:
1,078,000 - 1,020,000 = 58,000
the journal entry will be:
bonds payable 1,000,000
premium on bond 78,000
cash 1,020,000
gain on bond redemption 58,000
Ответ: