Question: On January 1, 2016, Tiny Tim Industries had outstanding $1,000,000 of 12% bonds with a book amount of $966,130. The indenture specified a call price

On January 1, 2016, Tiny Tim Industries had outstanding $1,000,000 of 12% bonds with a book amount of $966,130. The indenture specified a call price of $981,000. The bonds were issued previously at a price to yield 14%. Tiny Tim called the bonds (retired them) on July 1, 2016. What is the amount of the loss on early extinguishment?

MSG Corporation issued $100,000 of 3-year, 6% bonds outstanding on December 31, 2015 for $106,000. MSG uses straight-line amortization. On May 1, 2016, $10,000 of the bonds were retired at 112. As a result of the retirement, MSG will report:

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