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Using the formula: Par value of bonds less unamortized issuance costs less unamortized discount or plus...

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Accounting

Using the formula: Par value of bonds less unamortized issuancecosts less unamortized discount or plus unamortized premium, answerthe three questions below. Be show to show your work, as I givepartial credit. A company has a $1,000,000 bond issue outstandingwith unamortized premium of $10,000 and unamortized issuance costsof $5,300. What is the book value of its liability? If an affiliatepurchases half the bonds in the market at 98, what is the gain orloss? Is the gain or loss actual or constructive?

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The book value of a Bond consists of face Value of bonds payable credit balance unamortised discount on bonds payable debit balance unamortised premium on bonds payable credit balance unamortised    See Answer
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Using the formula: Par value of bonds less unamortized issuancecosts less unamortized discount or plus unamortized premium, answerthe three questions below. Be show to show your work, as I givepartial credit. A company has a $1,000,000 bond issue outstandingwith unamortized premium of $10,000 and unamortized issuance costsof $5,300. What is the book value of its liability? If an affiliatepurchases half the bonds in the market at 98, what is the gain orloss? Is the gain or loss actual or constructive?

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