ACCT 302 ch14

gain by the debtor and a loss by the creditor.

A troubled debt restructuring will generally result in a

face amount of the bonds multiplied by the stated interest rate.

Bond interest paid is equal to the

a gain on the restructuring.

In a troubled debt restructuring in which the debt is restructured by a transfer of assets with a fair value less than the carrying amount of the debt, the debtor would recognize

the nominal rate of interest exceeded the market rate.

Reich, Inc. issued bonds with a maturity amount of $200,000 and a maturity ten years from date of issue. If the bonds were issued at a premium, this indicates that

20 periods and 5% from the present value of 1 table

Swifty Corporation issued $96000 of ten-year, 12% bonds that pay interest semiannually. The bonds are sold to yield 10%. One step in calculating the issue price of the bonds is to multiply the face value by the table value for

stated value.

The face value of bonds is also called each of the following except

a difference between the reacquisition price and the net carrying amount of the debt which should be recognized in the period of redemption.

The generally accepted method of accounting for gains or losses from the early extinguishment of debt treats any gain or loss as

coupon rate, nominal rate, or stated rate.

The interest rate written in the terms of the bond indenture is known as the

effective rate.

The rate of interest actually earned by bondholders is called the

mortgage bonds.

The term used for bonds that are unsecured as to principal is

The market rate multiplied by the beginning-of-period carrying amount of the bonds.

Under the effective-interest method of bond discount or premium amortization, the periodic interest expense is equal to