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On January 1, 2004, Harry Co. redeemed its 15-year bonds of $1,500,000 par value for 102. They were originally issued on January 1, 1992 at 98 with a maturity date of January 1, 2007. The bond issue costs relating to this transaction were $90,000. Harry amortizes discounts, premiums, and bond issue costs using the straight-line method. What amount of loss should Harry recognize on the redemption of these bonds (ignore taxes)?

a. $54,000

b. $36,000

c. $30,000

d. $0

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9449173

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