On its December 31, 2024 balance sheet, Sunland Corp. reported bonds payable of $6090000. The bonds had been issued at par. On January 2, 2025, Sunland retired $3045000 of the outstanding bonds at par plus a call premium of $75000. What amount should Sunland report in its 2025 income statement as a loss on extinguishment of debt? O $37500 O $0 O $30450 O $75000

On its December 31, 2024 balance sheet, Sunland Corp. reported bonds payable of $6090000. The bonds had been issued at par. On January 2, 2025, Sunland retired $3045000 of the outstanding bonds at par plus a call premium of $75000. What amount should Sunland report in its 2025 income statement as a loss on extinguishment of debt? O $37500 O $0 O $30450 O $75000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The December 31, 2017, balance sheet of Ming Inc. included 12% bonds with a face amount of $107 million. The bonds were issued in 2005 and had a remaining discount of $4,100,000 at December 31, 2017. On January 1, 2018, Ming called the bonds at a price of 102. Required: Prepare the journal entry by Ming to record the retirement of the bonds on January 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet 1 > Record the retirement of the bonds on January 1, 2018. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2018 Record entry Clear entry View general journal
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MSG Corporation issued $100,000 of 3-year, 6% bonds outstanding on December 31, 2020 for $106,000. The bonds pay interest annually and MSG uses straight-line amortization. On May 1, 2021, $10,000 of the bonds were retired at 112. As a result of the retirement, MSG will report: A. a $600 loss. B. a $667 loss. C. a $1,200 loss. D. a $1,200 gain.
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