On June 30, one year before maturity, Boat Shoes, Inc. retired $600,000 of its 10% bonds payable at 96. The bond's book value on June 30 is $495,000. Bond interest is presently paid up to the date of retirement.
How much is the gain or loss on the retirement of these bonds?

Question

On June 30, one year before maturity, Boat Shoes, Inc. retired $600,000 of its 10% bonds payable at 96. The bond's book value on June 30 is $495,000. Bond interest is presently paid up to the date of retirement. 
How much is the gain or loss on the retirement of these bonds?

Quizplus · Accepted Answer

The Answer of On June 30, one year before maturity, Boat Shoes, Inc. retired $600,000 of its 10% bonds payable at 96. The bond's book value on June 30 is $495,000. Bond interest is presently paid up to the date of retirement. 
How much is the gain or loss on the retirement of these bonds?

On June 30, One Year Before Maturity, Boat Shoes, Inc