On January 1, year 15, Hart, Inc. redeemed its 15-year bonds of $500,000 par value for...

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On January 1, year 15, Hart, Inc. redeemed its 15-year bonds of $500,000 par value for 102. They were originally issued on January 1, year 3 at 98 with a maturity date of January 1, year 18. The bond issue costs relating to this transaction were $20,000. Hart amortizes discounts, premiums, and bond issue costs using the straight-line method. What amount of loss should Hart recognize on the redemption of these bonds? On January 1, year 15, Hart, Inc. redeemed its 15-year bonds of $500,000 par value for 102. They were originally issued on January 1, year 3 at 98 with a maturity date of January 1, year 18. The bond issue costs relating to this transaction were $20,000. Hart amortizes discounts, premiums, and bond issue costs using the straight-line method. What amount of loss should Hart recognize on the redemption of these bonds?

Answer rating: 100% (QA)

Solution Par value of Bonds Issue price of Bonds 490000 500000 x 98 Discount on issue ... View the full answer