At December 31 , 2014 Company Yhad Bonds Payable of $ 1.840,000 and Interest Payable of $ 50,000 . There was no other interest - bearing liability . The bonds pay interest every January 1. On December 31 , 2014 , the Company recalled the bonds by paying $ 1,860,000 cash . The cash paid for reacquisition included any accrued interest . what will company Y report as a gain or loss on extinguishment?
At December 31 , 2014 Company Yhad Bonds Payable of $ 1.840,000 and Interest Payable of $ 50,000 . There was no other interest - bearing liability . The bonds pay interest every January 1. On December 31 , 2014 , the Company recalled the bonds by paying $ 1,860,000 cash . The cash paid for reacquisition included any accrued interest . what will company Y report as a gain or loss on extinguishment?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At December 31 , 2014 Company Yhad Bonds Payable of $ 1.840,000 and Interest Payable of $ 50,000 . There was no other interest - bearing liability . The bonds pay interest every January 1. On December 31 , 2014 , the Company recalled the bonds by paying $ 1,860,000 cash . The cash paid for reacquisition included any accrued interest . what will company Y report as a gain or loss on extinguishment?
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