On January 1 of this year, the carrying value of XYZ Inc's bonds was $750,590. The face value of these bonds was $760,000. On the same date, the company redeemed 79.13% of these bonds at a price of 94.85% of the face value. Assuming that the normal maturity of the bonds was two years later, what is the absolute value of the gain or loss recognized on the redemption of the bonds on January 1 of this year? O a. $23,525 O b. $21,761 $24,113 O d. $22,349 O e. $22,937

On January 1 of this year, the carrying value of XYZ Inc's bonds was $750,590. The face value of these bonds was $760,000. On the same date, the company redeemed 79.13% of these bonds at a price of 94.85% of the face value. Assuming that the normal maturity of the bonds was two years later, what is the absolute value of the gain or loss recognized on the redemption of the bonds on January 1 of this year? O a. $23,525 O b. $21,761 $24,113 O d. $22,349 O e. $22,937

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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