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.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 8RE
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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad552993-88b6-44ed-a617-80aa5a4d7a33%2F19205852-3dc7-4248-8b7c-9ca869ca08cb%2Fagqpee_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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