Homework Answers
Carrying value of bonds = Face value-Unamortized discount = 300-30 = $270 Million
Retirement value = 300*.98 = 294
Gain (loss) on the retirement of bonds = Retirement value-Carrying value
= 294-270
Gain on the retirement of bonds = 24 Million
So gain on the retirement of bonds is reported under income statement as the component of income from continuing operations
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