Question: The Maruska Corporation has outstanding 800 000 of 8 percent bonds

The Maruska Corporation has outstanding $800,000 of 8 percent bonds callable at 104. On September 1, immediately after recording the payment of the semiannual interest and the amortization of the discount, the unamortized bond discount equaled $21,000. On that date, $480,000 of the bonds was called and retired.
1. How much cash must be paid to retire the bonds?
2. Is there a gain or loss on retirement? If so, how much is it?

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  • CreatedSeptember 10, 2014
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