When Bonds Are Retired Prior to Maturity with Proceeds from a New

question 2

Multiple Choice

When bonds are retired prior to maturity with proceeds from a new bond issue, gain or loss from the early extinguishment of debt, if material, should be

• A) amortized over the remaining original life of the retired bond issue.
• B) amortized over the life of the new bond issue.
• C) recognized as an extraordinary item in the period of extinguishment.
• D) recognized in income from continuing operations in the period of extinguishment.

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Definitions:

Childcare

The care and supervision of a child or multiple children at a time, which includes activities like education, providing basic needs, and ensuring safety.

Warning

A statement or event that signals a potential danger, problem, or other unpleasant situation.

Toddlers

Young children, typically aged one to three years, who are in the early stages of walking and developing speech.

Activities

Tasks or actions undertaken for a particular purpose, such as learning, recreation, or physical exercise.