On june 30 2011 omara co had outstanding 8 3000000 face, Ask an Expert

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On June 30, 2011, Omara Co. had outstanding 8%, $3,000,000 face amount, 15-year bonds maturing on June 30, 2021. Interest is payable on June 30 and December 31. The unamortized balances in the bond discount and deferred bond issue costs accounts on June 30, 2011 were $105,000 and $30,000, respectively. On June 30, 2011, Omara acquired all of these bonds at 94 and retired them.

Required: What net carrying amount should be used in computing gain or loss on this early extinguishment of debt?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9968963

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