On July 1, 2019, Sheffield Corp. issued 9% bonds in the face amount of $12400000, which mature
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13. On June 30, 2021, Vaughn Manufacturing had outstanding 9%, $8130000 face amount, 15-year bonds maturing on June 30, 2031. Interest is payable on June 30 and December 31. The unamortized balance in the bond discount account on June 30, 2021 was $356000. On June 30, 2021, Vaughn acquired all of these bonds at 95 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt?
14. On January 1, 2021, Vaughn Manufacturing redeemed its 15-year bonds of $7130000 par value for 101. They were originally issued on January 1, 2009 at 91 with a maturity date of January 1, 2024. Vaughn amortizes discounts and premiums using the straight-line method. What amount of loss should Vaughn recognize on the redemption of these bonds (ignore taxes)?
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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