What gain or loss should o report on the retirement

Reference no: EM132743942

Question: On 12-31-19, O issued $5,000,000 of its 4%, 5-year callable term bonds dated 12-31-19. The bonds pay interest every June 30 and December 31. O can call in the bonds any time after 12-31-21 at 103 plus interest. At the time O issued the bonds, similar bonds paid 4.25%. Upon issuing the bonds, O incurred and paid $50,000 of bond issuance costs. O uses the effective-interest method to amortize any bond discount or premium. O prepares AJEs only as of every December 31. On 03-01-22, called in all of the bonds at the call price of 103. What gain or loss should O report on the retirement of the bonds?

Reference no: EM132743942

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