112. On June 30, year 1, Dean Company had outstanding 8 %, $ 1,000,000 face value, 15-year bonds maturing on June 30, year 11. Interest is payable on June 30 and December 31. The unamortized balances on June 30, year 1, in the bond discount and deferred bond issue costs accounts were $ 45,000 and $ 15,000, respectively. Dean reacquired all of these bonds at 93 on June 30, year 1, and retired them. How much gain should Dean report on this early extinguishment of debt?
113. A retail store sells gift certificates that are redeemable in merchandise. When the gift certificate was sold for cash, a
114. Bake Co.’ s trial balance included the following at December 31, year 1:
115. The deferred income tax liability is not related to an asset for financial accounting purposes and is expected to reverse in year 2. What amount should be included in the current liability section of Bake’ s December 31, year 2 balance sheet?
116. In open market transactions, Oak Corp. simultaneously sold its long-term investment in Maple Corp. bonds and purchased its own outstanding bonds. The broker remitted the net cash from the two transactions. Oak’ s gain on the purchase of its own bonds exceeded its loss on the sale of Maple’ s bonds. Oak should report the
117. Gar, Inc.’ s trial balance reflected the following liability account balances at December 31, year 1:
118. The deferred income tax liability is based on temporary differences stemming from different depreciation methods for financial reporting and income taxes.