Solution-What is the gain or loss that TFS will recognize

What is the gain or loss that TFS will recognize

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Question - On January 1, 20X2, Tidball's Forensic Services (TFS) issued (sold) $3,000,000 of five-year bonds that pay 6% interest semi-annually on June 30 and December 31. The market rate of interest at time of issuance was 6.5%. The net proceeds realized from the bond sale were $2,906,832, representing the $2,936,832 gross proceeds from the sale less $30,000 in directly attributable issuance costs. TFS classified this liability at amortized cost. On January 1, 20X5, TFS repurchased all $3,000,000 of these bonds in the open market. The bonds were yielding 7% when repurchased. What is the gain or loss that TFS will recognize on derecognition of this bond liability?

Reference no: EM132708530

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What is the gain or loss that TFS will recognize

Reference no: EM132708530

Reference no: EM132708530

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