Chang industries has bonds outstanding with a par value of $200,000 and a carrying value of $203,000. If the company calls these bonds at a price of $201,000, the gain or loss on retirement is?

Question

03-08-2022
Business

Answered

Get detailed and accurate responses to your questions with IDNLearn.com. Whether your question is simple or complex, our community is here to provide detailed and trustworthy answers quickly and effectively.

Chang industries has bonds outstanding with a par value of $200,000 and a carrying value of $203,000. If the company calls these bonds at a price of $201,000, the gain or loss on retirement is?

Sagot :

Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. Find precise solutions at IDNLearn.com. Thank you for trusting us with your queries, and we hope to see you again.

Select All The Relations That Represent A Function.

Should. Municipal Officials Rethink Policies Of Offering Incentives Two Companies To Entice Them To Relocate

Drag The Tiles To The Correct Boxes To Complete The Pairs. Match Each Specialist With That Specialist's Function dermatologist radiologist cardiologist anesthes

For Each Phenotype, Write The Possible Genotypes. In Fruits Fliers, Black Eyes Are Dominant Over Red Eyes. A.Black Eyes:_______,_____ B. Red Eyes:________

A Trapezoid And A Rectangle Are Both Quadrilaterals. This Means They Both Have_____ Sides And_______ Angles. The Angles In A Rectangle_______ . The Angles In A

The Text Describes The Causes Of Certain Developments In American Education. What Does The Text Suggest Is The Cause Behind The Continued Expansion Of Education

I NEED HELP!!!! What 4 Minerals Most Commonly Found In Rocks? •calcite •feldspar •fluorite •halite •hematite •magnetite •mica •quartz

Use The Substitution Method −2x − 2y = 26 −x + 3y = −3 x = 72, Y = 23 x = − 9, Y = −4 No, X = 1 And Y = 7 Is Not An Answer Very Urgent Lol

Convert 2/5 To Per Cent

Please Very Soon I Offer The Crown !!! + 10 Points Urgently !!!

Smecloudbird17idn Smecloudbird17idn · Answer 1 · 2022-08-12T22:45:28-04:00

If the company calls these bonds at a price of $201,000, the gain or loss on the retirement would be $2,000.

Here, $203,000 is the net carrying value of the liability - $201,000 is the price the bonds were called at and the price that Chang industries paid to retire the bonds and the associated liability.

Therefore, $203,000 - $201,000 = $2,000

The gain or loss on the retirement would be $2,000.

A bond retirement occurs when an organization repurchases bonds that it had previously issued to investors. Thus, the issuer retires the bonds at the scheduled maturity date of the instruments.

Hence, bond retirement involves the cashing out of a bond that has been invested in.

To learn more about bond retirement here:

https://brainly.com/question/13960495

#SPJ4

Sagot :

Other Questions