During 20x1 Legion Company issued 10%, $1,200,000 bonds for $1,500,000. Legion retired all of these bonds on March 1, 20x2, at 105. The unamortized bond premium on that date was $126,000. What is the amount of gain or loss should Legion should recognize on this bond retirement?

During 20x1 Legion Company issued 10%, $1,200,000 bonds for $1,500,000. Legion retired all of these bonds on March 1, 20x2, at 105. The unamortized bond premium on that date was $126,000. What is the amount of gain or loss should Legion should recognize on this bond retirement?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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