A $600000 bond was retired at 98 when the carrying value of the bond was $590000. The entry to record the retirement would include a

A) gain on bond redemption of $10000.
B) loss on bond redemption of $10000.
C) loss on bond redemption of $2000.
D) gain on bond redemption of $2000.

Bond Redemption

Bond redemption is the process of repaying the principal amount of a bond at or before its maturity date by the issuer.

Carrying Value

Also known as book value, it is the value of an asset as shown on the balance sheet, calculated as the original cost minus accumulated depreciation.