On July 1, 2018, Miniature Company has bonds with balances as shown below. Bonds Payable 65,000 Discount Payable on Bonds 3,250 If the company retires the bonds for $66,150, what will be gain or loss on the retirement?
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
On July 1, 2018, Miniature Company has bonds with balances as shown below.
| Bonds Payable | |
| 65,000 |
| Discount Payable on Bonds | |
| 3,250 |
If the company retires the bonds for $66,150, what will be gain or loss on the retirement?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
