What would ABC Corp gain or loss

Assignment Help Financial Accounting
Reference no: EM132846700

Question - On January 1, 2015, ABC Corp. issued 3,000 of its 7%, $1,000 bonds for total issue proceeds of $2,916,000. The bonds were set to mature on January 1, 2035 but were also callable at 101 + a specific call fee at any time after December 31, 2017. Interest was payable semi-annually on July 1 and January 1.  On December 1, 2020, ABC called 40% of the bonds and retired them. The call fee/expense was $18,000 (for the 40% of bonds that were called at that time). The bond discount was being amortized on a straight-line basis. What would ABC Corp.'s 2020 gain or loss on this extinguishment of its debt be before tax?

Reference no: EM132846700

Questions Cloud

Explain the impact of the civil war then and now : Explain the impact of the Civil War then and now. Provide specific details and one outside source (citation required) to back up your answer.
How changes in economic conditions and technology can cause : How changes in social and economic conditions and technology can cause corresponding changes in the attitudes of the people and policies of the government.
Describe two outcomes of kansas-nebraska act : Describe two (2) outcomes of the 3/5ths Compromise, Missouri Compromise of 1820, Compromise of 1850, Kansas-Nebraska Act, and the Dred Scott Decision.
What connections between the article oral traditions : Lastly, reflect on your overall thoughts to any part of this week's materials. What did you learn that you hadn't previously known or thought about?
What would ABC Corp gain or loss : The bond discount was being amortized on a straight-line basis. What would ABC Corp.'s 2020 gain or loss on this extinguishment of its debt be before tax
What does the term sovereignty mean : How has California history typically been taught? what does the term "sovereignty" mean, and why is it important to the Kumeyaay specifically?
How donation affect the museum break-even attendance level : How will the donation affect the museum's break-even attendance level? Do you agree with the president and/or the financial manager? Why
Explain the kumeyaay early ways of life and advancements : According to the documentary, describe the Kumeyaay's early ways of life and advancements. Next describe the Kumeyaay today.
What is learning about mesoamerican societies : What were the main ideas from last week's article "1491" by Charles C. Mann? How does the article connect with this week's lecture?

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much of net income is allocated to xavier

The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 15%, salary allowances of $22,000 and $20,000 respectively, and the remainder equally. How much of the net income..

  What should danica do for health insurance while unemployed

The company has 25 full time and 10 part time employees but does not offer group health insurance. What should Danica do for health insurance while unemployed?

  How universal robina should disclose major customer data

In its 2019 financial statements, Universal Robina should disclose major customer data if sales to any single customer amount to at least

  Assigned to the company ending inventory

Francine company's ending inventory is composed of 50 units that had cost $20 dollar each and 100 units that had cost $14 each. If the company can replace all 150 units at a cost of $16 each, determine the value that should be assigned to the company..

  How much of the premiums can nell inc deduct

In December 2015, Nell, Inc., an accrual basis taxpayer, paid $12,000 for insurance premiums for her business for the 2016 calendar year. How much of the premiums can Nell, Inc., deduct in 2015?

  What are the total costs assigned to the large customer

Company produces precision components. Company has 11 customers, one accounts for 60 percent of th esales, with the remaining ten accounting for th rest of the sales. What are the total costs assigned to the large customer and to the ten small custom..

  How much money has the cash mgt system freed up

If the firm has P4 million per day in collection and P3 million per day in disbursements, how much money has the cash mgt system freed up?

  Which the journal entry to record the sale would include a

Which the journal entry to record the sale would include a? Merchandise with a cost of $6,000 is sold for $9,500 on account with term 2/10, n/30.

  What is the measurement of the subsidiary

On December 31, 2018, what is the measurement of the subsidiary which is considered as a "disposal group classified as held for sale"?

  What is considered a like-kind exchange

Which activity of the tax advisor exemplifies the nature of tax compliance as a closed situation? What is considered a like-kind exchange?

  Estimate target enterprise value or ev

Based on 679.1 million shares outstanding, estimate the intrinsic value per share and compare it with Target's stock price on January 31, 2012, of $50.81.

  Calculate net present value for each plane model

Calculate the weighted average cost of capital for the firm's existing capital structure. Calculate net present value for each plane model using company's WACC.

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