Homework Answers
1.Loss on retirement of bond=
=Amount paid over face value value +Unamortized discount - Accrued interest
=(10,000*0.02)+400-250
=$350
2.Cash paid to retire the bond issue=10000*102%=$10200
3.Amount of Interest Payable liquidated at retirement=$250
4.Amount of Premium or Discount on Bond Payable liquidated at retirement=$400
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