On January 1, 2024, Tiny Tim Industries had outstanding $1,000,000 of 10% bonds with a book value of $968,500. The indenture specified a call price of $985,000. The bonds were issued previously at a price to yield 12% and interest payable semi-annually on July 1 and January 1. Tiny Tim called the bonds (retired them) on July 1, 2024. What is the amount of the loss on early extinguishment? O O О Multiple Choice $0 $8,032 $8,110 $8,390

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...
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On January 1, 2024, Tiny Tim Industries had outstanding $1,000,000 of 10% bonds with a book value of $968,500. The indenture specified a call price of $985,000. The bonds were issued
previously at a price to yield 12% and interest payable semi-annually on July 1 and January 1. Tiny Tim called the bonds (retired them) on July 1, 2024. What is the amount of the loss on early
extinguishment?
O
O
О
Multiple Choice
$0
$8,032
$8,110
$8,390
Transcribed Image Text:On January 1, 2024, Tiny Tim Industries had outstanding $1,000,000 of 10% bonds with a book value of $968,500. The indenture specified a call price of $985,000. The bonds were issued previously at a price to yield 12% and interest payable semi-annually on July 1 and January 1. Tiny Tim called the bonds (retired them) on July 1, 2024. What is the amount of the loss on early extinguishment? O O О Multiple Choice $0 $8,032 $8,110 $8,390
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