Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
-Smith Corporation issued a $100,000, 10-year, 10 percent bond on January 1, 2010, for $112,000. Smith uses the straight-line method of amortization. On April 1, 2013, Smith reacquired the bonds for retirement when they were selling at 102 on the open market. Assuming no call premiums, how much gain or loss should Smith recognize on the retirement of the bonds?

Question

Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
-Smith Corporation issued a $100,000, 10-year, 10 percent bond on January 1, 2010, for $112,000. Smith uses the straight-line method of amortization. On April 1, 2013, Smith reacquired the bonds for retirement when they were selling at 102 on the open market. Assuming no call premiums, how much gain or loss should Smith recognize on the retirement of the bonds?

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The Answer of Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
-Smith Corporation issued a $100,000, 10-year, 10 percent bond on January 1, 2010, for $112,000. Smith uses the straight-line method of amortization. On April 1, 2013, Smith reacquired the bonds for retirement when they were selling at 102 on the open market. Assuming no call premiums, how much gain or loss should Smith recognize on the retirement of the bonds?

Use the Present Value and Future Value Tables Included in Appendix