On Its December 31, 2017 Statement of Financial Position, Codfish

question 7

Multiple Choice

On its December 31, 2017 statement of financial position, Codfish Ltd.reported bonds payable of $1,000,000.The bonds had been issued at par.On January 2, 2018, Codfish retired one half of the outstanding bonds at 103 plus a call premium of $35,000.Ignoring income taxes, what amount should Codfish report on its 2018 income statement as loss on extinguishment of debt?

• A)$50,000
• B)$35,000
• C)$15,000
• D)$0

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Definitions:

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