Brooks Company received proceeds of $188500 on 10-year, 8% bonds issued on January 1, 2018. The bonds had a face value of $200000, pay interest annually on January 1, and have a call price of 101. Brooks uses the straight-line method of amortization. Brooks Company decided to redeem the bonds on January 1, 2020. What amount of gain or loss would Brooks report on its 2020 income statement? $9200 gain $11200 gain $11200 loss $9200 loss

The correct answer to the following question will be "$11200 loss".

Explanation:

The given call price = 101

If we void the bond or we'll have to compensate,

⇒  

⇒  $

So that we will invite loss of $2000

Bonds are often issued approved discount with,

⇒

⇒ $

But bonds were authorized in January 2018 and most are resurrected on January 2017 so we'll have to amortize discount on bonds for 2 years

Hence amortized, now,

⇒

⇒ $

Hence, discount on bond measure pending amortization,

⇒

⇒ $

Now, Total loss:

⇒

⇒ $

So that Option C seems to be a right answer.

answer; /// i believe that the correct answer is ///making it easy to work with the organization;

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough