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18 September, 20:07

Clabber company has bonds outstanding with a par value of $100,000 and a carrying value of $97,300. if the company calls these bonds at a price of $95,000, the gain or loss on retirement is

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  1. 18 September, 20:24
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    Gain or loss = book value of the bonds - the amount paid to the bond hold

    Gain or loss = $97,300 - $ 95,000 = $ 2300

    The book value of the bond = face value of the bond + Unamortized premium

    =$100,000+$x = $2300
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