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miss Akunina [59]
3 years ago
10

On February 1, 2020, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on Januar

y 1, 2021, at 102. Unamortized bond premium on that date was $92,800. How much gain or loss should be recognized on this bond retirement
Business
1 answer:
marta [7]3 years ago
4 0

72,800 gain should be recognised on this bond retirement

Solution:

Bond redemption applies to repurchases of newly sold debt by creditors. If the bonds have been issued, the borrower excludes the debt due in its accounts at the expected maturity of those instruments.

Paid at redemption : $1,000,000 * 102          = 1,020,000    

Book value: $1,000,000 + $92,800               = 1,092,800

                                                                      ----------------------

Gain on bond retirement                                 = 72,800

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Whilst comparing sales vs income you have to understand that “sales” refers to the total amount of cash a company generates before getting rid of any fees. “income”, then again, is equal to sales minus the fees of doing commercial enterprise, which include depreciation, hobby, taxes, and other expenses.

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8 0
1 year ago
During its 2021 fiscal year, Jacobsen corporation reported before tax income of 620,000
mixer [17]

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<u>Explanation:</u>

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6 0
4 years ago
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Alisiya [41]

Answer:

C. $17,500

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7 0
3 years ago
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Answer:

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<u><em>Structural Unemployment</em></u>

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Answer:

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