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*Problem 14-4 Marin Company issued its 8%, 25-year mortgage bonds in the principal amount of $3,040,000 on January 2, 2003, at a discount of $152,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-line basis. The inde ture securing the issue provided that the bonds could be called or redemption in total but not in part at any t me e ore maturit, at 105% of the principal amount it d . provide for any sinking fund. On Dece mber 18, 2017, the company issued its 10% 20-year debenture bonds in the principal amount of $4.150,000 at 02 and the proceeds were used to redeem the 2018. The indenture securing the new issue did not provide for any sinking fund or for redemption before maturity 25-year mortgage on anuary . (a Prepare our al entries to record the issuance of (1) the 10% bonds and 2 the redemption of the 89 bonds. ( fnd entry is regu red amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) select Entry for eac unt tites anden erofor the No. Date Account Titles and Explanation Debit Credit (1) December 18, 2017 (2) January 2, 2018 (b) Indicate the income statement treatment of the gain or loss from redemption. is reported as Question Attempts: 0 of 3 used

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