Business, 19.05.2020 22:23 captn64

X2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity:

Date Cash Paid Interest Expense Decrease in Carrying Value Carrying Value
01/01/2021 $ 229,267
12/31/2021 $ 15,400 $ 13,756 $ 1,644 227,623
12/31/2022 15,400 13,657 1,743 225,881
12/31/2023 15,400 13,553 1,847 224,033
12/31/2024 15,400 13,442 1,958 222,075
12/31/2025 15,400 13,325 2,075 220,000

X2 buys back the bonds for $103,000 immediately after the interest payment on 12/31/2022 and retires them. What gain or loss, if any, would X2 record on this date?

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X2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each yea...

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