Use the following information to answer the next 6 questions:
X2 issued callable bonds on January 1,2015.The bonds pay interest annually on December 31 each year.X2's accountant has projected the following amortization schedule from issuance until maturity:

-X2 buys back the bonds for $103,000 immediately after the interest payment on 12/31/2016 and retires them.What gain or loss,if any,would X2 record on this date?
A)No gain or loss.
B)$3,000 gain.
C)$1,202 loss.
D)$327 loss.

Question

Use the following information to answer the next 6 questions:
X2 issued callable bonds on January 1,2015.The bonds pay interest annually on December 31 each year.X2's accountant has projected the following amortization schedule from issuance until maturity:
 
-X2 buys back the bonds for $103,000 immediately after the interest payment on 12/31/2016 and retires them.What gain or loss,if any,would X2 record on this date?
A)No gain or loss. 
B)$3,000 gain. 
C)$1,202 loss. 
D)$327 loss.

Quizplus · Accepted Answer

The Answer of Use the following information to answer the next 6 questions:
X2 issued callable bonds on January 1,2015.The bonds pay interest annually on December 31 each year.X2's accountant has projected the following amortization schedule from issuance until maturity:
 
-X2 buys back the bonds for $103,000 immediately after the interest payment on 12/31/2016 and retires them.What gain or loss,if any,would X2 record on this date?
A)No gain or loss. 
B)$3,000 gain. 
C)$1,202 loss. 
D)$327 loss.

Use the Following Information to Answer the Next 6 Questions