What amount should abc recognize as pretax loss

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Problem 1: On December 31, 2020, ABC Co. had outstanding 12%, $5,000,000 face value bonds maturing on December 31 2023. Interest was payable semiannually every June 30 and December 31. On December 31, 2020, after amortization was recorded for the period, the unamortized bond discount and bond issue cost were $500,000 and $300,000, respectively. On that date ABC acquired all its outstanding bond on the open market at 98 and retired them. At December 31 2020, what amount should ABC recognize as pretax loss on early extinguishment of bonds? (Round off present value factors up to four decimal places, in presenting your final answer round-up to the nearest dollar)

Reference no: EM132650634

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