Soap company issued 200000 of 8 5-year bonds on january 1

Reference no: EM13569919

Soap Company issued $200,000 of 8%, 5-year bonds on January 1, 20X6. The discount on issuance was $12,000. Bond interest is paid annually on December 31. On December 31, 20X8, Pumice Company purchased one-half of the outstanding bonds for $96,000. Both companies use the straight-line method of amortization. What amount of gain or loss from retirement of debt will be reported on the 20X8 consolidated financial statements? a. $1,600 gain. c. $1,200 gain. b. $1,600 loss. d. $1,200 loss. How do you calculate the answer?

Reference no: EM13569919

Questions Cloud

The loan of 15 000 is being repaid by 10 monthly : the loan of 15 000 is being repaid by 10 monthly installments with the first 5 payments of x and the last 5 payments of

Mrjones borrows 25 000 from bank b for 10 years he makes : mr.jones borrows 25 000 from bank b for 10 years. he makes semiannual payments of 2 000. the bank receives interest on

A loan is being repaid by 15 annual installments of 1 000 : a loan is being repaid by 15 annual installments of 1 000 each. interest is at an effective rate of 5. immediately

Justin zinder is a venture capitalist facing two : justin zinder is a venture capitalist facing two alternative investment opportunities. he intends to invest 1 million

Soap company issued 200000 of 8 5-year bonds on january 1 : soap company issued 200000 of 8 5-year bonds on january 1 20x6. the discount on issuance was 12000. bond interest is

Company p owns 80 of company s on january 1 20x3 company s : company p owns 80 of company s. on january 1 20x3 company s has outstanding 6 bonds with a face value of 200000 and an

Greater corporation acquired all of the stock of lesser : greater corporation acquired all of the stock of lesser corporation in 2009 and the entities have filed a state and

Computer information services is a computer software : computer information services is a computer software consulting company. its three major functional areas are computer

Which product should have a larger markup over variable : which product should have a larger markup over variable cost a product whose demand is elastic or a product whose

User Account

All Pages