X2 buys back the bonds for $103,000 immediately after the interest payment on 12/31/2022 and retires them. What gain or loss, if

Question

3 years ago

7

any, would X2 record on this date?

2 answers:

Llana [10] · Answer 1 · 2021-12-25T01:32:10+03:00

Llana [10]3 years ago

7 0

Answer: $61,800 (loss)

Explanation: 20% interest on the bond $103,000 after a year = 0.20 X $103,000 = $20,600

Then after 2 years, that is, 2022, the amount = 2 X $20,600 = $41,200

∴ Amount, that is, loss received = $(103,000 - 41,200) = $61,800

Anastaziya [24] · Answer 2 · 2021-12-24T23:53:57+03:00

6 0

Answer:

The answer is $327 loss

Explanation:

Gain (loss) = Carrying Value-buy back value

= 102673-103000

(loss) = 327

So the answer is <u>$327 loss</u>