On May 1,2020, ABC Corporation issued a 5-year, 10%, 1,000 of the P 5,000 face value bonds with a yield of 12%. The bonds is payable in series of five equal annual installments every April 30 and pays annual interest based on the outstanding balance starting on April 30,2020. Assuming all of the bonds were retired at 102 on April 30,2022 after payment of periodic interest, how much is the gain or loss on retirement of the bonds? (For present value factors, do not round off)     P 159,694.79 loss P 159,694.79 gain P 2,199,694.79 gain P 2,199,694.79 loss

Q: On January 2, 2016, Banno Corp. issued P1,500,000 of 10% bonds to yield 11% due December 31, 2025.…

A: The answer is stated below:

Q: On January 2, 2020, Sheridan Corporation issued $1,400,000 of 10% bonds at 96 due December 31, 2029.…

A: Bonds refer to fixed obligation which is paid either by government or a corporate entity to…

Q: On January 1, 2019, X Sports Corporation issued 10% bonds with a face value of $200,000. The bonds…

A: Par value of bonds =$200000Issue price of bonds =$191000Discount on issuance of bonds…

Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…

A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…

Q: On January 1, 2021, Lyle’s Limeade issues 4%, 10-year bonds with a face amount of $90,000 for…

A:

Q: On 3/1/2020, Taft Corporation issues 17-year bonds, dated 1/1/2020, with a par value of $300,000.…

A: Bonds payable is the liability recorded when the company generates cash by issuing the bonds.…

Q: On January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds…

A: Given: Face value= $5,000,000 i (Stated interest rate) = 14% n (Time period)= 10 x 2 = 20 Market…

Q: On January 1, 2020, Bridgeport Corporation issued $4,920,000 of 10% bonds at 103 due December 31,…

A: The borrowers issue bonds to raise money from investors willing to lend them money for a certain…

Q: On January 1, 2019, company acquired 2,000,000 face amound bonds dated January 1, 2022. The bonds…

A: Introduction' Bond is a investment securities that is issued by company where investors lends money…

Q: The Marin Company issued $240,000 of 13% bonds on January 1, 2020. The bonds are due January 1,…

A: The price of a bond is the present value of its cash flows. For a coupon bond, the cash flows are…

Q: On January 2, 2020, Ayayai Corporation issued $2,150,000 of 10% bonds at 98 due December 31, 2029.…

A: The binds are issued at a discount when the bond offers a lower contract rate than the market…

Q: On January 1, 2019, Dhaka Company issued $1,000,000 of 6% bonds due on January 1, 2025. Interest on…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.

Q: On January 1, 2021, ABC Company issued a $500,000, 8%, 10-year bond at the yield of 6%. Interest is…

A: Debt instruments that a firm issues to investors are called bonds. It is equivalent to the…

Q: On January 1, 2016, Crane Company issued 2000 of its 10%, $1,000 bonds for $2080000. These bonds…

A: The issuer of debt instruments such as callable bonds has the right to pay back the principal value…

Q: On January 1, 2020, Bobond issued a 3-year, 9% P1,000,000 at par. Interest is payable semi-annually…

A: Bonds are longer term sources of finance for companies and bonds are lower cost of source of finance…

Q: At the beginning of 2020 Max company issued 10% bonds with a face value of 900,000. These bonds…

A: Coupon rate = 10%/2 = 5% Market rate = 12%/2 = 6% Number of periods = 5*2 =10 Interest paid = Face…

Q: On January 1, 2022, Pipestone Corporation issued a five-year, $40,000, 7% bond. The interest is…

A: Lets understand the basics.Bond can be issued at either par value or at discount or at premium.…

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: On January 2, 2020, Whispering Corporation issued $1,700,000 of 10% bonds at 97 due December 31,…

A: Loss on RedemptionThe profit or loss on a bond redemption is frequently quite easy to determine. The…

Q: On January 2, 2020, Martinez Corporation issued $1,700,000 of 10% bonds at 97 due December 31, 2029.…

A: Bonds are the securities which are issued by the entities in order to raise capital for the…

Q: On January 2, 2020, Blue Corporation issued $1,850,000 of 10% bonds at 96 due December 31, 2029.…

A: Loss on RedemptionThe profit or loss on a bond redemption is frequently quite easy to determine. The…

Q: The Kingbird Company issued $240,000 of 8% bonds on January 1, 2020. The bonds are due January 1,…

A: Bonds are the instrument by which company raises the money for a fixed interest payment as finance…

Q: What loss should Mirada record on the redemption of bonds?

A: Bonds are the financial instruments which shows the amount of ownership of debt in a business…

Q: On January 1, 2018, Splash City issues $470,000 of 7% bonds, due in 20 years, with interest payable…

A: Amortization schedules show down how much of each payment goes toward principle reduction and how…

Q: On June 1, 2019, Vape Inc. issued P12,000,000 of 10% bonds to yield 12% effective rate. Interest is…

A: The carrying value of a bond is the the net amount between the bond's face value plus any…

Q: On January 1, 2020, ABC co. issued 3-year bonds with a face value of P1,200,000 and stated interest…

A: The provided information are: Face value = P1,200,000 Rate of interest (r) = 8% = 0.08 Yield = 10% =…

Q: On January 2, 2020, Sage Corporation issued $1,250,000 of 10% bonds at 97 due December 31, 2029.…

A: The issuer of the bond is required to make the payment of the face value of the bond at the end of…

Q: On December 31, 2020, Whitfield Corp. issued $ 400,000 10% bonds, due on December 31, 2025. Interest…

A: Bonds Payable: Bonds Payable are the financial instruments that are issued with a promise or…

Q: On January 1, 2020, Carla Corporation issued $4, 920,000 of 10% bonds at 103 due December 31, 2029.…

A: There are a number of expenses involved in the process of issuing and selling bonds to investors…

Q: On December 31, 2020, Whitfield Corp. issued $ 400,000 of 10% bonds, due on December 31, 2025.…

A: Interest expense = Previous period's Carrying amount of bonds * 8% * 6/12   Premium Amortization…

Q: The Martinez Company issued $230,000 of 12% bonds on January 1, 2020. The bonds are due January 1,…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…

A: Definition:   Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by…

Q: n April 2, 2020, Lucan Company issued 9% bonds in the amount of P10,000,000 which mature on April 2,…

A: Price of bond is the present value of coupon payment and present value of the par value of the bond…

Q: On January 1,2020, ABC Corporation issued a 5-year, 10%, 1,000 of the P 5,000 face value bonds with…

A: Carrying value of the bonds retired as of December 31, 2022 = Present value of principal + Present…

Q: On January 2, 2020, Tamarisk Corporation issued $1,000,000 of 10% bonds at 96 due December 31, 2029.…

A: The redemption of an investment may generate a capital gain or loss, both of which are recognized on…

Q: s when the bonds were issue to the market. These will be amortized ing amortized on a straight-line…

A: Loss of redemption is the difference between carrying or book value of bond and redemption value.…

Q: On January 2, 2020, Stellar Corporation issued $1,850,000 of 10% bonds at 96 due December 31, 2029.…

A: Loss on Redemption The profit or loss on a bond redemption is frequently quite easy to determine.…

Q: Spurrier Corp. has 10-year bonds with a face value of $400,000 and a carrying value of $420,345 as…

A: Given information is: Spurrier Corp. has 10-year bonds with a face value of $400,000 and a carrying…

Q: On January 1, 2021, Shay Company issues $300,000 of 10%, 15-year bonds. The bonds sell for $293,250.…

A: Bonds are the financial debt instruments which are issued with the purpose of raising the money from…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.