On June 30, 2021, Omara Co. had outstanding 8%, P3,000,000 face amount, 15-year bonds maturing on June 30, 2031. Interest is payable on June 30 and December 31. The unamortized amount of the bond discount on June 30, 2021 was P135,000. On June 30, 2021, Omara acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt? a.) P3,000,000 b.) P2,955,000 c.) P2,865,000 d.) P2,820,000

On June 30, 2021, Omara Co. had outstanding 8%, P3,000,000 face amount, 15-year bonds maturing on June 30, 2031. Interest is payable on June 30 and December 31. The unamortized amount of the bond discount on June 30, 2021 was P135,000. On June 30, 2021, Omara acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt? a.) P3,000,000 b.) P2,955,000 c.) P2,865,000 d.) P2,820,000

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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