A $500,000 Bond Is Retired at 97 When the Carrying

question 102

Multiple Choice

A $500,000 bond is retired at 97 when the carrying amount of the bond is $480,000. The entry to record the retirement would include a:

• A) $15,000 gain.
• B) $5,000 loss.
• C) $2,000 gain.
• D) $20,000 loss.

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Definitions:

Parent Country

The nation where a multinational company is headquartered or originally established.

Host Country

The country in which a multinational company operates a facility or office outside of its home country.

Third Country

A nation other than the two primarily involved in a transaction or event, often used in the context of diplomatic relations or international business.

Criteria

Standards, rules, or tests by which something can be judged or decided.