Copper Mills issued bonds with a par value of $120,000 to Osmium Automotive at a premium of $8,300. The same bonds were purchased by Tungsten Electronics, an affiliate of Copper, from Osmium for $117,500. The premium remaining on Copper's books when Tungsten purchased the bonds was $7,200. Calculate the total gain on the constructive retirement of bonds.

Answer rating: 100% (QA)

The total gain on the constructive retirement of bonds can b... View the full answer