Gamma Variant Corporation authorized the sale of P4,000,000 of 12%, 8-year debentures on January 1, 2016. Interest is payable on January 1 and July. The entire issue was sold on April 1, 2016, at 104 plus accrued interest. On April 1, 2021, P2,000,000 of the bond issue was reacquired and retired at 100 plus accrued interest. On June 30, 2021, the remaining bonds were reacquired at 98 plus accrued interest and refunded with an issue of P3,200,000 of 9% bonds which were sold at 102. Based on the above and the result of your audit, determine the: (use the straight-line method to amortize premium or discount) Gain or loss on retirement of remaining bonds on June 30, 2021.

Answer rating: 100% (QA)

The original bond issue was for P4000000 The bonds were sold at 104 wh... View the full answer