On January 1, 2019, WELL Enterprises issued 3,100 of its 9%,…

On January 1, 2019, WELL Enterprises issued 3,100 of its 9%, $1,000 bonds for $3,198,000 in order to expand their location of wellness spas across the nation. The bond premium was amortized on a straight-line basis. These bonds were to mature on January 1, 2029, but were callable at 101 any time after December 31, 2022. Interest was payable semiannually on July 1 and January 1. On July 1, 2024, WELL called all the bonds and retired them.   Before income taxes, WELL’s gain or loss in 2024 on this early extinguishment of debt was:  

The next two questions are based on the following informatio…

The next two questions are based on the following information   FORD Motor Company issued $900,000 of bonds on January 1, 2022. They have an 8‐year term and pay interest semiannually on June 30 and December 31 of each year. This is the partial bond amortization schedule for the bonds. What is the effective annual rate of interest on the bonds?   Date  Cash Interest  Effective   Interest  Increase in     Balance  Outstanding            Balance 1/1/2022                852,919 6/30/2022   45,000     46,911       1,911           854,830 12/30/2022   45,000    47,016       2,016           856,845 6/30/2023   45,000       12/31/2023   45,000