On June 30, 2002, LOAD Company had outstanding 8%, P1,000,000 face amount, 15-year bonds maturing on June 30 , 2009. Interest is payable on June 30 and December 31. The unamortized balance on June 30, 2002, in the bond discount and bond issue costs accounts were P35,000 and P10,000 respectively. LOAD acquired all of these bonds at 94 on June 30, 2002, and retired them. Ignoring income taxes, how much gain should LOAD report on this early extinguishment of debt? P15,000

On June 30, 2002, LOAD Company had outstanding 8%, P1,000,000 face amount, 15-year bonds maturing on June 30 , 2009. Interest is payable on June 30 and December 31. The unamortized balance on June 30, 2002, in the bond discount and bond issue costs accounts were P35,000 and P10,000 respectively. LOAD acquired all of these bonds at 94 on June 30, 2002, and retired them. Ignoring income taxes, how much gain should LOAD report on this early extinguishment of debt? P15,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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