A corporation issued 8% bonds with a par value of $1,000,000, receiving a $20,000 premium. On the interest date 5 years later, a

Question

2 years ago

7

A corporation issued 8% bonds with a par value of $1,000,000, receiving a $20,000 premium. On the interest date 5 years later, a

fter the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is:______

Business

1 answer:

Mrac [35] · Answer 1 · 2022-08-17T12:13:21+03:00

Mrac [35]2 years ago

3 0

Answer:

$22,000 gain.

Explanation:

Please see attachment