Hogan Company has bonds with a principal value of $1,000,000 outstanding. The unamortized premium on the...
Hogan Company has bonds with a principal value of $1,000,000 outstanding. The unamortized premium on the bonds is $12,000. The company redeemed the bonds at 104. What is the company’s gain or loss on the redemption?
Group of answer choices
$52,000 loss
$52,000 gain
$4,000 gain
$4,000 loss
$28,000 loss
Homework Answers
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Gain (Loss) = Payment made - Carrying value of bonds = (1,000,000*104%) - (1,000,000+12,000) = 1,040,000 - 1,012,000 = 28,000 loss |
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