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Business, 24.05.2021 20:10 kuadirkennedy

On January 1, 2020, Perkins Incorporated issued 2,000 of its 9%, $1,000 bonds for $2,048,000. Bond issue costs were $12,000. These bonds were to mature on January 1, 2030 but were callable at 103 any time after December 31, 2023. Interest was payable semi-annually on July 1 and January 1. On May 1, 2024, Perkins called all the bonds and retired them with interest. Perkins uses the straight-line method for amortization of bond premiums and discounts. Assuming all previous entries have been properly recorded, Perkins will record the following gain or loss on the bond retirement: a. $211,000
b. $200,000
c. $206,000
d. $201,000
e. none of above

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On January 1, 2020, Perkins Incorporated issued 2,000 of its 9%, $1,000 bonds for $2,048,000. Bond i...
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