Elmira, Inc had $20,000,000 of bonds outstanding on Dec 31, 2018. The ten year bonds were issued
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Elmira, Inc had $20,000,000 of bonds outstanding on Dec 31, 2018. The ten year bonds were issued on Jan 1, 2012 for $21,000,000. Elmira can call the bonds at 102% any time after Jan 1, 2018. At the end of 2018 the premium on bonds payable account had a credit balance of $346,000. Acme decides to call/retire the bonds on Jan 2, 2019.
a. Compute the gain or loss on early extinguishment of debt
b. Prepare the journal entry to record the debt extinguishment
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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