An extinguishment of bonds payable, which were originally issued at a premium, is made by purchase of the bonds between interest dates.At the time of reacquisition
A)any costs of issuing the bonds must be amortized up to the purchase date.
B)the premium must be amortized up to the purchase date.
C)interest must be accrued from the last interest date to the purchase date.
D)All of these answer choices are correct.

Question

Quizplus · Accepted Answer

When bonds are reacquired, any costs of issuing the bonds and the premium must be amortized up to the purchase date, and interest must be accrued from the last interest date to the purchase date.

An Extinguishment of Bonds Payable, Which Were Originally Issued at a Premium