Asked by
Kelly Taylor
on Nov 13, 2024
Verified
A $300,000 bond was redeemed at 98 when the carrying value of the bond was $292,000. The entry to record the redemption would include a
A) loss on bond redemption of $4,000
B) gain on bond redemption of $4,000
C) gain on bond redemption of $2,000
D) loss on bond redemption of $2,000
Carrying Value
The book value of assets and liabilities as reported in the financial statements, factoring in depreciation, amortization, and impairment.
Bond Redemption
The process in which an issuer repays the par or face value of a bond at or before maturity.
- Identify and assess increases or decreases in value upon the redemption of bonds.
Verified Answer
DW
Learning Objectives
- Identify and assess increases or decreases in value upon the redemption of bonds.
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