Extinguishment of Bonds Prior to Maturity On December 1, 2017, Cone Company issued its 9%, $560,000 face value bonds for $650,000, plus accrued interest. Interest is payable on November 1 and May 1. On December 31, 2019, the book value of the bonds, inclusive of the unamortized premium, was $590,000. On July 1, 2020, Cone reacquired the bonds at 97 plus accrued interest. Cone appropriately uses the straight-line method for the amortization because the results do not materially differ from those of the effective interest method. Required: Prepare a schedule to compute the gain or loss on this redemption of debt. Enter all values as positive values. Cone Company Computation of Gain on Extinguishment of Debt July 1, 2020 Book value of bonds on December 1, 2017 $fill in the blank Book value of bonds on December 31, 2019 fill in the blank Amortization for 25 months $fill in the blank Monthly amortization $fill in the blank  Book value of bonds on December 31, 2019 fill in the blank Amortization for January 1 to July 1, 2020 fill in the blank Book value of bonds on July 1, 2020 fill in the blank Cost of reacquisition $fill in the blank Gain on bond redemption $fill in the blank

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Chapter1: Financial Statements And Business Decisions
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Extinguishment of Bonds Prior to Maturity

On December 1, 2017, Cone Company issued its 9%, $560,000 face value bonds for $650,000, plus accrued interest. Interest is payable on November 1 and May 1. On December 31, 2019, the book value of the bonds, inclusive of the unamortized premium, was $590,000. On July 1, 2020, Cone reacquired the bonds at 97 plus accrued interest. Cone appropriately uses the straight-line method for the amortization because the results do not materially differ from those of the effective interest method.

Required:

Prepare a schedule to compute the gain or loss on this redemption of debt. Enter all values as positive values.

Cone Company
Computation of Gain on Extinguishment of Debt
July 1, 2020
Book value of bonds on December 1, 2017 $fill in the blank
Book value of bonds on December 31, 2019 fill in the blank
Amortization for 25 months $fill in the blank
Monthly amortization $fill in the blank 
Book value of bonds on December 31, 2019 fill in the blank
Amortization for January 1 to July 1, 2020 fill in the blank
Book value of bonds on July 1, 2020 fill in the blank
Cost of reacquisition $fill in the blank
Gain on bond redemption $fill in the blank
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