On January 1, 2008, Davis Corporation issued $3,000,000 of 8% bonds at 103. Interest is paid annually

Question:

On January 1, 2008, Davis issued $3,000,000 of 8% bonds at 103. Interest is paid annually on December 31 of each year. The bonds mature on December 31, 2027, and the company uses the straight-line method of amortization. On January 2, 2016, Davis reacquired the bonds and recognized a loss of $96,000.
Required:
Calculate the reacquisition price of the bonds on January 2, 2016, and prepare the journal entry to record the reacquisition of Davis’s bonds.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...