On February 1, 2020, Pat Weaver Inc. (PWI) issued 11%, $1,100,000 bonds for $1,400,000. PWI retired all of these bonds on January 1, 2021, at 102. Unamortized bond premium on that date was $112,200. How much gain or loss should be recognized on this bond retirement?
On February 1, 2020, Pat Weaver Inc. (PWI) issued 11%, $1,100,000 bonds for $1,400,000. PWI retired all of these bonds on January 1, 2021, at 102. Unamortized bond premium on that date was $112,200. How much gain or loss should be recognized on this bond retirement?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 3E
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On February 1, 2020, Pat Weaver Inc. (PWI) issued 11%, $1,100,000 bonds for $1,400,000. PWI retired all of these bonds on January 1, 2021, at 102. Unamortized bond premium on that date was $112,200. How much gain or loss should be recognized on this bond retirement?
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