answersLogoWhite

0


Best Answer

Companies report a gain or loss when they repurchase their bonds because the book value may more/less than the amount that is used to repurchase (retire) a bond.

There is no real economic gain or loss in the repurchase of bonds. This is because the perceived gain or loss is exactly offset by the present value of the future cash flow implications of the repurchase.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why do companies report a gain or loss when they repurchase their bonds?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the chemical bonds that gain or lose?

These are ionic bonds.


Do Covalent bonds do not gain or lose electrons?

Covalent bonds do not gain or lose electrons, but rather share electrons.


Why does sulfur gain electrons when forming ionic bonds?

because nonmetals gain electrons in ionic bonds and metals lose electrons in ionic bonds(oxidize).


How are bonds taxed?

The income from bonds is taxed, unless the bonds are exempt from federal tax (municipal bonds) and/or state tax (varies by state). If there is gain on the sale of a bond (you receive more than you originally paid for it), the gain is taxable.


What type of elements gain and loose electrons as they form bonds?

Metals lose electrons, nonmetals gain electrons.


What is the difference between convent and ionic bonds?

Covalent bonds involve the sharing of electrons between atoms, and ionic bonds involve the gain and loss of electrons, which forms ions.


What type of element is most likely to gain electrons when it is forms bonds?

metals


Which type of element is more likely to gain electrons when it forms bonds?

nonmetals


Do Muni Bonds have a good rate of return?

Municipal bonds can have a good rate of return. They can also have high capital gain taxes. Letting these bonds grow to maturity can ensure maximum returns.


Is it true that Covalent bonds do not gain or lose electrons but rather share electrons?

yes


Which do you report on tax forms realized capital gain or unrealized capital gain?

You will report the sale of a capital asset on your 1040 tax form either the schedule D or the schedule 4797 and you will either have a gain or a loss on each transaction that you have to report on the schedules. You are not allowed to claim a loss on the sale of a personal asset but any gain on the sale of a personal asset is taxable income on your 1040 income tax return. You can call them what ever you want. When you read the tax form instructions they do not say realized capital gain or unrealized capital gain.


Does hypothyroidism cause you to gain weight?

Some patients report weight gain with subclinical hypothyroidism. Although the T4 is normal in subclinical hypothyroidism by definition, some patients report symptoms with only the elevated TSH.