Washington Inc. issued $675,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $7,500 of the bond discount. On January 1, 2017, Washington Inc. retired the bonds at 103 (after making the interest payment on that date).
Calculate the net book value of the bond on January 1, 2017 and the gain or loss that Washington Inc. would report for this retirement.

Question

Washington Inc. issued $675,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $7,500 of the bond discount. On January 1, 2017, Washington Inc. retired the bonds at 103 (after making the interest payment on that date). 
Calculate the net book value of the bond on January 1, 2017 and the gain or loss that Washington Inc. would report for this retirement.

Quizplus · Accepted Answer

The Answer of Washington Inc. issued $675,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $7,500 of the bond discount. On January 1, 2017, Washington Inc. retired the bonds at 103 (after making the interest payment on that date). 
Calculate the net book value of the bond on January 1, 2017 and the gain or loss that Washington Inc. would report for this retirement.