On April 1, 2025, the entity retired 2,000 of its P1,000 bonds at a redemption price of P2,120,000, inclusive of any accrued interest. How much is the gain or loss on the retirement of bonds?
On April 1, 2025, the entity retired 2,000 of its P1,000 bonds at a redemption price of P2,120,000, inclusive of any accrued interest. How much is the gain or loss on the retirement of bonds?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 15MCQ
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On December 31, 2023, Mimiyuh Company issued 12%, 20-year bonds, with face amount of P5,000,000. The bonds were issued at a price that yields 10%. Use P factors rounded off to FOUR decimal places. Interest is payable annually every December 31. On April 1, 2025, the entity retired 2,000 of its P1,000 bonds at a redemption price of P2,120,000, inclusive of any accrued interest. How much is the gain or loss on the retirement of bonds?
Answer: 362,873 GAIN
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