On january 2, 2012, grouper corporation issued $1,100,000 of 10% bonds at 98 due december 31, 2021. interest on the bonds is payable annually each december 31. the discount on the bonds is also being amortized on a straight-line basis over the 10 years. (straight-line is not materially different in effect from the preferable "interest method".) the bonds are callable at 101 (i. e., at 101% of face amount), and on january 2, 2017, grouper called $660,000 face amount of the bonds and redeemed them. ignoring income taxes, compute the amount of loss, if any, to be recognized by grouper as a result of retiring the $660,000 of bonds in 2017

bonds payable           660,000 debit

loss on redemption      13,200 debit

       cash                                  666,600 credit

       discount on bonds payable 6,600 credit

Explanation:

discount at issuance:

face value      1,100,000

issued at 98: 1,078,000

discount           22,000

the discount is amortized with straight line method

discount at call date:

2017 - 2012 = 5 year

22,000 x 5/10 = 11,000 discount at Jan 2nd,2017

discount of 660,000 bonds at Jan 2nd,2017

1,100,000   -->    11,000

  660,000 -->     6,600

carrying value 660,000 - 6,600 = 653,400

bonds are called at 101

660,000 x 101/100 =   666,600‬

loss on redemption:

653,400 - 666,600 = 13,200

answer; communities of interest; i believe this is correct, plz check first good luck;