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tiny-mole [99]
2 years ago
7

Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000. If the issuing corporation redeem

s the bonds at 103, what is the amount of gain or loss on redemption
Business
1 answer:
Romashka [77]2 years ago
4 0

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

<h3>How much does the company gain or lose on redemption?</h3>

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 brainly.com/question/7158291

#SPJ1

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