A company has bonds outstanding with a par value of $100,000. The unamortized premium on these bonds is $2,700. If the company retired these bonds at a call price of 99, the gain or loss on this retirement is:
$ 1,000 gain.
$ 1,000 loss.
$ 2,700 loss.
$ 2,700 gain.
$ 3,700 gain.
show work please...
note: to your concern i put the questions on here b/c they are off a study guide in which the professor does't supply answers to and and i have worked them out myself but just want to compare to make sure im on the right track... thanks.
2007-09-11 02:38:27 · 3 answers · asked by jasmine 2 in Business & Finance ➔ Other - Business & Finance
The book value is face value plus unamortised premium. So the book value is $100,000 + $2,700 = $102,700. The bond was retired at call price of 99, i.e. for $99,000. The difference is the gain of $3,700.
2007-09-11 03:24:24 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
$1000 loss.
2007-09-11 10:06:24 · answer #2 · answered by Raghavendra S 1 · 0⤊ 0⤋
show me your working, i will cross-check the answer.
2007-09-11 09:49:25 · answer #3 · answered by Anonymous · 1⤊ 1⤋