Barbie originally issued 5,000,000 face value bonds at 105 or a premium of 250,000. Subsequently, the entity reacquired 1, 000,000 face value bonds to be placed in the treasury at 103. At the time of the reacquisition, the unamortized premium balance is 200,000, and accrued interest on the treasury bonds is 30,000 which is paid in cash. How much should be the book value of the bonds after the reacquisition of the bonds as treasury?

Barbie originally issued 5,000,000 face value bonds at 105 or a premium of 250,000. Subsequently, the entity reacquired 1, 000,000 face value bonds to be placed in the treasury at 103. At the time of the reacquisition, the unamortized premium balance is 200,000, and accrued interest on the treasury bonds is 30,000 which is paid in cash. How much should be the book value of the bonds after the reacquisition of the bonds as treasury?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 15MC: Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018,...

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