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    Bond Liability: Todd Corporation Example

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    On Dec 31, Year 1, Todd Corporation issued 500 of its 10%, $1000 bonds at 105. Todd Corporation uses IFRS. The bonds were issued through an underwriter to whom Todd paid bond issue costs of $15,000. On Dec 31, Year 1 balance sheet, Todd should report the bond liability at:

    A 500,000
    B 510,000
    C 515,000
    D 525,000

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    Solution Preview

    Under IFRS the bond issue costs are deducted from the issue ...

    Solution Summary

    Explains how to calculate the bond liability of Todd Corp.