Tony Hawk\'s Adventure (THA) issued callable bonds on January 1, 2012. THA\'s ac
ID: 2471327 • Letter: T
Question
Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2012. THA's accountant has projected the following amortization schedule from issuance until maturity:
THA buys back the bonds for $365,226 immediately after the interest payment on 12/31/12 and retires them. What gain or loss, if any, would THA record on this date?
$1,300 gain
$14,774 gain
$4,513 loss
No gain or loss
Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2012. THA's accountant has projected the following amortization schedule from issuance until maturity:
Explanation / Answer
Company has gained $14774.00 i.e. $380000.00 - $365226.00