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26 September, 06:15

X2 buys back the bonds for $103,000 immediately after the interest payment on 12/31/2022 and retires them. What gain or loss, if any, would X2 record on this date?

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Answers (2)
  1. 26 September, 06:19
    0
    Answer: $61,800 (loss)

    Explanation: 20% interest on the bond $103,000 after a year = 0.20 X $103,000 = $20,600

    Then after 2 years, that is, 2022, the amount = 2 X $20,600 = $41,200

    ∴ Amount, that is, loss received = $ (103,000 - 41,200) = $61,800
  2. 26 September, 06:39
    0
    The answer is $327 loss

    Explanation:

    Gain (loss) = Carrying Value-buy back value

    = 102673-103000

    (loss) = 327

    So the answer is $327 loss
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