On June 30, 2020, Kikiam Inc. had outstanding 8%, P3,000,000 face amount, 15-year bonds maturing on June 30, 2027. Interest is payable on June 30 and December 31. The unamortized balances of bond discount as of June 30, 2020 is P105,000. Kikiam re-acquired all its bonds at 94 on June 30, 2020 and retired them. Ignoring income taxes, how much is the gain should Kikiam report on this early extinguishment of debt? A. 45,000 B. 75,000 C. 180,000 D. 105,000

On June 30, 2020, Kikiam Inc. had outstanding 8%, P3,000,000 face amount, 15-year bonds maturing on June 30, 2027. Interest is payable on June 30 and December 31. The unamortized balances of bond discount as of June 30, 2020 is P105,000. Kikiam re-acquired all its bonds at 94 on June 30, 2020 and retired them. Ignoring income taxes, how much is the gain should Kikiam report on this early extinguishment of debt? A. 45,000 B. 75,000 C. 180,000 D. 105,000

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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