A Company Has Bonds Outstanding with a Par Value of $400,000.The

question 137

Multiple Choice

A company has bonds outstanding with a par value of $400,000.The unamortized premium on these bonds is $2,000.The company retired these bonds by buying them on the open market at 97.What is the gain or loss on this retirement?

• A)$0 gain or loss
• B)$10,000 gain
• C)$10,000 loss
• D)$14,000 gain
• E)$14,000 loss

---

Definitions:

Diagnosed

The process of identifying a disease or condition by its signs, symptoms, and possibly through diagnostic tests.

Mentally Ill

Refers to individuals suffering from disorders that affect the mind, leading to impairments in perception, thinking, or emotional state.

Labels

Terms or phrases applied to people or things to categorize them, often influencing perceptions and behavior.

Self-fulfilling

A prophecy or expectation that causes itself to become true due to positive feedback between belief and behavior.