Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond. Straight-line amortization bond: Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment. Early retirement of bonds : The early redemption or retirement of bonds refers to the process of reimbursing the principal amount of bonds to the bondholders before the maturity period of the bond. To Determine: The gain or loss of Corporation W, in 2016 using the book value method.

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Chapter 14, Problem 8CPA

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Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Straight-line amortization bond: Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

Early retirement of bonds: The early redemption or retirement of bonds refers to the process of reimbursing the principal amount of bonds to the bondholders before the maturity period of the bond.

To Determine: The gain or loss of Corporation W, in 2016 using the book value method.

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