On July 1, 2018, The Wings Corporation paid $460,000 plus accrued interest to retire bonds with a
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Question:
On July 1, 2018, The Wings Corporation paid $460,000 plus accrued interest to retire bonds with a maturity value of $500,000. The bonds had a book value of $475,131 on January 1, 2018. The stated interest rate is 8% with interest payments being made annually on December 31; the bonds were issued at a time when the market interest rate was 10%.
Requirement:
Determine the gain or loss on the bond retirement.
Related Book For
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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