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aksik [14]
2 years ago
13

Bonds Payable has a balance of $1,196,000 and Discount on Bonds Payable has a balance of $11,960. If the issuing corporation red

eems the bonds at 97.5, what is the amount of gain or loss on redemption?
Mathematics
1 answer:
Luden [163]2 years ago
4 0

Answer:

$17,940 gain.

Step-by-step explanation:

The corportation redeems the bond at 97.5.

100 - 97.5 = 2.5%

1,196,000 * 2.5% = 29,900.

29,900 - 11,960 = 17,940

$17,940 gain at redemption.

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