On June 30, 2011, Howard Company acquired a 5-acre tract of land

On June 30, 2011, Howard Company acquired a 5-acre tract of land. On the tract was a warehouse that Howard intended to use as a distribution center. At the time of the purchase, the land had an assessed tax valuation of $2,250,000 and the building had an assessed tax value of $7,750,000. Howard paid $16,750,000 for the land and building. After the purchase the company paid $750,000 to have various modifications made to the building. At what amount should Howard record the building?A $7,750,000B $14,500,000C $8,500,000D $13,731,250A bond with a $750,000 maturity value is immediately retired for $745,000 plus accrued interest. The discount on bonds payable (bond discount) at the retirement date is $25,500. Which of the following statements is correct?A The gain on the debt extinguishment is $5,000B The loss on the debt extinguishment is $20,500C The gain on the debt extinguishment is $30,500D The gain or loss on the debt extinguishment can’t be determined without knowing the dollar amount of the accrued interest