Solution-Calculate the gain or loss and record refunding

Calculate the gain or loss and record refunding transaction

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Question - Cheyenne Corporation had bonds outstanding with a maturity value of $490,000. On April 30, 2020, when these bonds had an unamortized discount of $12,000, they were called in at 104. To pay for these bonds, Cheyenne had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 12 years. The new bonds were issued at 103 (face value $490,000). Issue costs related to the new bonds were $3,900. All issue costs were capitalized. Cheyenne prepares financial statements in accordance with IFRS. Ignoring interest, calculate the gain or loss and record this refunding transaction.

Reference no: EM132544811

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Calculate the gain or loss and record refunding transaction

Reference no: EM132544811

Reference no: EM132544811

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