Foster corporation issued a 100000 10-year 10 percent bond, Ask an Expert

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Foster Corporation issued a $100,000, 10-year, 10 percent bond on January 1, 2010, for $112,000. Foster uses the straight-line method of amortization. On April 1, 2013, Foster reacquired the bonds for retirement when they were selling at 102 on the open market. How much gain or loss should Foster recognize on the retirement
of the bonds?

a. $2,000 loss

b. $3,900 gain

c. $6,100 gain

d. $8,200 loss

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M973598

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