A Corporation Retired $500,000 of Bonds, Which Have an Unamortized

question 116

Multiple Choice

A corporation retired $500,000 of bonds, which have an unamortized discount of $10,000, by repurchasing them for $500,000. How much was the gain or loss on the retirement of the bonds?

• A) There was no gain or loss.
• B) There was a $10,000 loss.
• C)There was a $10,000 gain.
• D)There was a $500,000 loss.

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