Bonds Payable has a balance of $1,000,000 and Premium on Bonds Payable has a balance of $7,000. If the issuing corporati...

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Bonds Payable has a balance of $1,000,000 and Premium on Bonds Payable has a balance of $7,000. If the issuing corporati...

Bonds Payable has a balance of $1,000,000 and Premium on Bonds Payable has a balance of $7,000. If the issuing corporation redeems the bonds at 101, what is the amount of gain or loss on redemption? $7,000 gain $3,000 gain $3,000 loss $7,000 loss

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Answer 1

Answer #1

I Gain or loss on bond Net - Redemption Proceeds - Carrying Amount = (-1000,00X4014.) - (F 1000000 78700) = $ 1010000 - $1007

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Answer 2

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