5 On December 31, 2021, when the market interest rate (=the yield to maturity) of the bond is 4.20%, VWX de-recognized entire bond by paying the market value + $5,000.Determine the amount of the gain or loss on the bond de-recognition. Assume the coupon is paid before the bondde-recognition, and the bond was completely repurchased on 12/31/2021.(If it is a loss, express the amount by a negative number using - sign in front of the amount, such as -123.)%24 Round your answer to the nearest dollar, such as 12345. (No need to write $ as $ is already in front of the box.)(Allowance is set + or - $1.)Use the effective interest rate method.The following information pertains to a bond issue of the VWX Corporation:Maturity value: $1,000,000Maturity date: December 31, 2023Stated interest rate (Coupon rate): 5.25%Interest payments are made annually on December 31stDate of issue: January 1, 2016Effective (market) interest rate (Yield to maturity) at issue: 4.75%

calculation of gain or loss on bond DE- recognition are as follows

Round your answer to the nearest dollar, such as 12345. (No need to write $ as $ is already in front of the box.) (Allowance is set + or - $1.) Use the effective interest rate method. The following information pertains to a bond issue of the VWX Corporation: Maturity value: $1,000,000 Maturity date: December 31, 2023 Stated interest rate (Coupon rate): 5.25% Interest payments are made annually on December 31st

Round your answer to the nearest dollar, such as 12345. (No need to write $ as $ is already in front of the box.) (Allowance is set + or - $1.) Use the effective interest rate method. The following information pertains to a bond issue of the VWX Corporation: Maturity value: $1,000,000 Maturity date: December 31, 2023 Stated interest rate (Coupon rate): 5.25% Interest payments are made annually on December 31st

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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