On February 1, 2020, Pat Weaver Inc. (PWI) issued 7%, $1,600,000 bonds for $1,900,000. PWI retired...
On February 1, 2020, Pat Weaver Inc. (PWI) issued 7%, $1,600,000 bonds for $1,900,000. PWI retired all of these bonds on January 1, 2021, at 104. Unamortized bond premium on that date was $166,400. How much gain or loss should be recognized on this bond retirement?
Multiple Choice
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$112,000 gain.
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$0 gain.
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$102,400 gain.
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$133,000 gain.
Homework Answers
Carrying value of bonds = Face value+Unamortized premium = 1600000+166400 = 1766400
Retirement value = 1600000*1.04 = 1664000
Gain = 1766400-1664000 = 102400
So answer is c) $102400 Gain
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On February 1, 2020, Pat Weaver Inc. (PWI) issued 7%, $1,600,000 bonds for $1,900,000. PWI retired...
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On February 1, 2017, Pat Weaver Inc. (PWI) issued 9%, $1,900,000 bonds for $2,200,000. PWI retired all of these bonds on January 1, 2018, at 103. Unamortized bond premium on that date was $195,700. How much gain or loss should be recognized on this bond retirement? Multiple Choice $171,000 gain. Ο $138,700 gain. Ο Ο $0 gain. Ο $198,000 gain.
On February 1, 2020, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on January 1, 2021, at 102. Unamortized bond premium on that date was $92,800. How much gain or loss should be recognized on this bond retirement? $96,000 gain. $111,800 gain. $72,800 gain. $0 gain.
Saved 10 On February 1, 2020, Pat Weaver Inc. (PWI) issued 9%, $1,100,000 bonds for $1,400,000. PWI retired all of these bonds on January 1, 2021, at 105. Unamortized bond premium on that date was $115,500. How much gain or loss should be recognized on this bond retirement? Multiple Choice $126,000 gain. $99,000 gain. $60,500 gain. $0 gain.
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