The December 31, 2016, statement of financial position of Cotton Corporation includes the following: 9% bonds...

The December 31, 2016, statement of financial position of Cotton Corporation includes the following:

9% bonds payable due December 31, 2025 $718,900

The bonds have a face value of $700,000 and were issues on December 31, 2015, at 103, with interest payable on July 1 and December 31 of each year. Cotton uses straight-line amortization to amortize bond premiums or discount. On March 1, 2017, Cotton retired $280,000 of these bonds at 98 plus accrued interest. Ignoring income taxes, what should cotton record as a gain on retirement bonds?

$7,560
$13,020
$13,160
$14,000

Direct incremental costs incurred to sell shares, such as underwriting costs, should be accounted for as:

a reduction of share capital
an expense of the period in which the shares are issued
an intangible asset
a reduction of retained earnings

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ekkarill92 answered 3 weeks ago

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