On January 1, 2019, TSLA Corporation issued 2,300 of its 10%, $1,000 bonds for $2,386,000. These bonds were to mature on January 1, 2029, but were callable at 101 any time after December 31, 2022. Interest was payable ally on July 1 and January 1. On July 1, 2024, TSLA called all of the bonds and retired them. The bond premium was amortized on a straight-line basis. Before income taxes, TSLA Corporation's gain or loss in 2024 on this early extinguishment of debt was? O $66,000 gain. O $15,700 gain. O $24,300 gain. O $23,000 loss.

On January 1, 2019, TSLA Corporation issued 2,300 of its 10%, $1,000 bonds for $2,386,000. These bonds were to mature on January 1, 2029, but were callable at 101 any time after December 31, 2022. Interest was payable ally on July 1 and January 1. On July 1, 2024, TSLA called all of the bonds and retired them. The bond premium was amortized on a straight-line basis. Before income taxes, TSLA Corporation's gain or loss in 2024 on this early extinguishment of debt was? O $66,000 gain. O $15,700 gain. O $24,300 gain. O $23,000 loss.

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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