If a company repurchases bonds with a $1,000,000 maturity value for $1,020,000 when the book value is $950,000, a loss of $20,000 will be reported.

Name: If a company repurchases bonds with a $1,000,000 maturity value for $1,020,000 when the book value is $950,000, a loss of $20,000 will be reported.
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A loss of $70,000 will be reported because the company paid $1,020,000 to repurchase bonds that had a book value of $950,000.

If a Company Repurchases Bonds with a $1,000,000 Maturity Value