Reference no: EM132002189

On April 1, 2015, Tequila Mockingbird Bar&Grill, Inc. issued $62,500 of 8-year bonds payable at 95. The bonds bear interest at 4.8%. Interest is payable semi-annually on June 30 and December 31 each year. Using all of the proceeds-not face value-from the bond issuance, on the same day, it purchased fixed assets for its operations, and allocated the proceeds from the bond issuance as follows: 75% for new kitchen equipment with a 10-year useful life, and a sales value of $3200, for which it uses straight-line 25% for new furniture with a 5-year useful life, and a salvage value is $1,500, for which it uses double-declining balance On January 2, 2018, after it makes the required interest payment the required interest payment on bonds payable, just for the Halibut Restaurant Co. redeems all of the bonds at 107. And, on the same date, it sells all of the equipment for $36,500. What is the balance in Discount on Bonds Payable or Premium on Bonds Payable, whichever is applicable, on January 1, 2018, before any redemption occurred? What is the gain or loss Just for the Halibut Restaurant Co would replication on the redemption of all of the bonds on January 2, 2018? What is the gain or loss just for the Halibut Restaurant Co would replication on the sale of the equipment on January 2, 2018?