A corporation called an outstanding bond obligation four years before maturity. At that time there was...

 

Transcribed Image Text:

A corporation called an outstanding bond obligation four years before maturity. At that time there was an unamortized discount of $1560000. To extinguish this debt, the company had to pay a call premium of $450000. How should these amounts be treated for accounting purposes? A corporation called an outstanding bond obligation four years before maturity. At that time there was an unamortized discount of $1560000. To extinguish this debt, the company had to pay a call premium of $450000. How should these amounts be treated for accounting purposes?

Answer rating: 100% (QA)

Heres how the corporation should treat the unamortized discount and call premium for accounting purp... View the full answer