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
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
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 8RE
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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)
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
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