Exercise 14-12 Your answer is partially correct. Try again. On January 2, 2015, Cullumber Corporation issued $1,000,000 of 10% bonds at 96 due December 31, 2024. Interest on the bonds is payable...

On January 2, 2015, Cullumber Corporation issued $1,000,000 of 10% bonds at 96 due December 31, 2024. 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, 2020, Cullumber called $600,000 face amount of the bonds and redeemed them.


Ignoring income taxes, compute the amount of loss, if any, to be recognized by Cullumber as a result of retiring the $600,000 of bonds in 2020.
 (Round answer to 0 decimal places, e.g. 38,548.)

Loss on redemption

$enter a dollar amount of loss on redemption rounded to 0 decimal places

Prepare the journal entry to record the redemption.
(Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)