question archive A Company sold $5,000,000 of five year, 6% bonds at par on January 1, 2012 with interest payable January 1 and July 1 each year
A Company sold $5,000,000 of five year, 6% bonds at par on January 1, 2012 with interest payable January 1 and July 1 each year
Subject:AccountingPrice: Bought3
A Company sold $5,000,000 of five year, 6% bonds at par on January 1, 2012 with interest payable January 1 and July 1 each year. The bonds can be called at anytime at 101 plus accrued interest. On April 1, 2013, it bought back $1,000,000 of bonds on the open market for $984,736 including accrued interest and retired them.
What would the gain or loss on retirement of these bonds on the retirement date would be?
