On January 1, 2024, Baddour, Incorporated, issued 10%, 12-year bonds with a face amount of $176 million. The bonds were priced at $154 million to yield 12%. Interest is paid semiannually on June 30 and December 31. Baddour’s fiscal year ends September 30. Required: What amount(s) related to the bonds would Baddour report in its balance sheet at September 30, 2024? What amount(s) related to the bonds would Baddour report in its income statement for the year ended September 30, 2024? What amount(s) related to the bonds would Baddour report in its statement of cash flows for the year ended September 30, 2024? In which section(s) should the amount(s) appear? Note: For all requirements, enter your answers in whole dollars.

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.