Homework Answers
Solution:
Carrying value of bond on 30.06.2021 = $12,500,000 + $52,000 = $12,552,000
Retirement value of bond = $12,500,000*99% = $12,375,000
Gain on redemption of bonds = $12,552,000 - $12,375,000 = $177,000
Hence first option is correct.
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