On June 30th, one year before maturity, Bava Industries retired $495,000 of 8% bonds at a cost of 96. The bond's had a net book value on June 30th of $457,500. Bond interest is presently paid up to the date of retirement.
What is the gain or loss on the retirement of these bonds?

Question

On June 30th, one year before maturity, Bava Industries retired $495,000 of 8% bonds at a cost of 96. The bond's had a net book value on June 30th of $457,500. Bond interest is presently paid up to the date of retirement. 
What is the gain or loss on the retirement of these bonds?

Quizplus · Accepted Answer

The Answer of On June 30th, one year before maturity, Bava Industries retired $495,000 of 8% bonds at a cost of 96. The bond's had a net book value on June 30th of $457,500. Bond interest is presently paid up to the date of retirement. 
What is the gain or loss on the retirement of these bonds?

On June 30th, One Year Before Maturity, Bava Industries Retired