On January 1, 20x1, POTENT POWERFUL Co. issued 12% bonds with face amount of ₱4,000,000 for ₱4,303,264. The bonds mature

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answerhappygod
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On January 1, 20x1, POTENT POWERFUL Co. issued 12% bonds with face amount of ₱4,000,000 for ₱4,303,264. The bonds mature

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On January 1, 20x1, POTENT POWERFUL Co. issued 12% bonds with face amount of ₱4,000,000 for ₱4,303,264. The bonds mature in five years and pay annual interest every year-end. The effective interest rate is 10%. On July 1, 20x3, POTENT called-in the entire bonds and retired them at 102, which is inclusive of payment for accrued interest. How much is the gain (loss) on the extinguishment of the bonds?
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