On June 31, 2016, Oriental Company had outstanding 8% P 1,000,000 face amount, 15-year bonds maturing on June 30, 2023. Interest is payable on June 30 and December 31. The unamortized balances on June 30, 2016, in the bond discount and deferred bond issue costs, were P35,000 and P 10,000, respectively. Oriental acquired all these bonds at 94 on June 30, 2016 and retired them. How much gain should Oriental report on this early extinguishment of debt? Answer this with solution pls
On June 31, 2016, Oriental Company had outstanding 8% P 1,000,000 face amount, 15-year bonds maturing on June 30, 2023. Interest is payable on June 30 and December 31. The unamortized balances on June 30, 2016, in the bond discount and deferred bond issue costs, were P35,000 and P 10,000, respectively. Oriental acquired all these bonds at 94 on June 30, 2016 and retired them. How much gain should Oriental report on this early extinguishment of debt? Answer this with solution pls
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 5E
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On June 31, 2016, Oriental Company had outstanding 8% P 1,000,000 face amount, 15-year bonds maturing on June 30, 2023. Interest is payable on June 30 and December 31. The unamortized balances on June 30, 2016, in the bond discount and deferred bond issue costs, were P35,000 and P 10,000, respectively. Oriental acquired all these bonds at 94 on June 30, 2016 and retired them. How much gain should Oriental report on this early extinguishment of debt?
Answer this with solution pls
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