On January 1, 2013, F Corp. issued 3,200 of its 10%, $1,000 bonds for $3,298,000. These bonds
Fantastic news! We've Found the answer you've been seeking!
Question:
On January 1, 2013, F Corp. issued 3,200 of its 10%, $1,000 bonds for $3,298,000. These bonds were to mature on January 1, 2023 but were callable at 101 any time after December 31, 2016. Interest was payable semiannually on July 1 and January 1. On July 1, 2018, F called all of the bonds and retired them. The bond premium was amortized on a straight-line basis. Before income taxes, F Corp.'s gain or loss in 2018 on this early extinguishment of debt was:
Multiple Choice
$32,000 loss.
$81,000 gain.
$21,900 gain.
$12,100 gain.
Expert Answer:
Related Book For 
Posted Date:
