Manfred Company retired $500,000 of 5% bonds payable at 96 on June 30, 2017, two years before the bonds matured. The bond book value on June 30, 2017 is $475,000, and bond interest is paid up to the date of retirement.
What is the gain/loss on the retirement of these bonds?

Question

Manfred Company retired $500,000 of 5% bonds payable at 96 on June 30, 2017, two years before the bonds matured. The bond book value on June 30, 2017 is $475,000, and bond interest is paid up to the date of retirement. 
What is the gain/loss on the retirement of these bonds?

Quizplus · Accepted Answer

The Answer of Manfred Company retired $500,000 of 5% bonds payable at 96 on June 30, 2017, two years before the bonds matured. The bond book value on June 30, 2017 is $475,000, and bond interest is paid up to the date of retirement. 
What is the gain/loss on the retirement of these bonds?

Manfred Company Retired $500,000 of 5% Bonds Payable at 96