The bond premium was amortized on a straight-line basis

Assignment Help Accounting Basics
Reference no: EM131755145

On January 1, 2011, F Corp. issued 4,000 of its 9%, $1,000 bonds for $4,126,000. These bonds were to mature on January 1, 2021, but were callable at 101 any time after December 31, 2014. Interest was payable semiannually on July 1 and January 1. On July 1, 2016, F called all of the bonds and retired them. The bond premium was amortized on a straight-line basis. Before income taxes, F Corp.'s gain or loss in 2016 on this early extinguishment of debt was:

$29,300 gain. $103,000 gain. $16,700 gain. $40,000 loss.

Reference no: EM131755145

Questions Cloud

Define the distribution of car colors for vehicles : For which of the following would it be inappropriate to display the data with a single pie chart? The distribution of car colors for vehicles purchased.
Public policy and political science : A Lubbock County, Texas, government official discovered some extra money in the budget that must be spent by the end of the fiscal year.
Analyze the relevance of the flexibility of agile project : Analyze the relevance of the flexibility of agile project management. Would an agile approach assist you in successfully managing your project?
Why do you think these celebrities will be so effective : What three steps are you going to have these celebrities talk about? Do celebrities sell their stuff?
The bond premium was amortized on a straight-line basis : These bonds were to mature on January 1, 2021, but were callable at 101 any time after December 31, 2014. Interest was payable semiannually
Describe how training objectives align with course outcomes : Describe how training objectives align with course outcomes. Learning objectives vary greatly by the topic and outcome for the course.
What is the most serious problem with the graph : The following bar graph shows the distribution of favorite subject for a sample of 1000 students. What is the most serious problem with the graph?
Critically assess the emergent and planned approaches : Therefore, there is no formal strategy in place. Critically assess the emergent and planned approaches in relation to this organisation.
What makes poshmark unique and special : You do a nice job of describing what makes Poshmark unique and special. But this section is written in a way that is completely blind to the competition.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare argument convincing him to hold off on his decision

Write a 250 word statement - Prepare an argument convincing him to hold off on his decision and see the results of your analysis first

  What is the initial value of the new land

What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?

  Financial items of the lessee

If a lease transaction is accorded capital lease treatment rather than operating lease treatment, it would have what impact on the following financial items of the lessee?

  Which of the following answers correctly states

Which of the following answers correctly states the effect of recording the collection of the reinstated receivable on April 7, 2015?

  Prepare the general journal entry

Use this information to prepare the General Journal entry (without explanation) for the January 2 entry

  Prepare journal entries to record issuance of the bonds

Compute the amount received for the bonds and prepare an amortization schedule. Enter data in the schedule for only the first two interest periods. Use the effective interest rate method.

  Prepare the journal entry to record the investment

On January 1, 2014, Meyer Company acquired MacNeill Corporation by issuing 42,500 shares, Prepare the journal entry to record the investment in the subsidiary

  What are the possible consequences of paternity leave

Be very specific, and support your opinion with examples from your own life or that which you see in the news. ?Would you respond differently to a female boss? If yes, how? If no, why?

  A person borrows 1375 at 115 simple interest a payment of

a person borrows 1375 at 11.5 simple interest. a payment of 320 at the end of 2 years and a payment of 640 is made at

  Discuss the initial budget process

Budget Process and Variances - Discuss the initial budget process, the variances, and potential reasons for the variances

  Corporation gain or loss on sale of lots

In 2009, Ratliff installs roads and utilities at a cost of $36,000 and pays property taxes totaling $2,000 in 2009 and 2010. Interest paid on the loan used to purchase the land is $10,000 in 2009 and $6,000 in 2010. In 2010, Ratliff sells 10 lots ..

  Gatrong to record the purchase of the bonds

Refer to the information in RE15 5. Prepare the journal entry on June 30 for Gatrong to record the first interest receipt, using the effective interest method. Round to the nearest dollar.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd