On September 10, 2016, Humbert Company Issued Bonds with a Face

question 58

Multiple Choice

On September 10, 2016, Humbert Company issued bonds with a face value of $600,000 for a price of 96. During 2017, Humbert exercised a call provision and redeemed the bonds for 101. At the time of the redemption, the bonds had a book value of $590,000. The journal entry to record the redemption includes:

• A)a credit to Bonds Payable for $576,000.
• B)a debit to Loss on Bond Redemption for $16,000.
• C)a credit to Discount on Bonds for $24,000.
• D)a debit to Discount on Bonds Payable for $10,000.

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Definitions:

Oligopolies

Oligopolies are market structures characterized by a small number of firms dominating the market, leading to limited competition.

Oligopolistic Firms

Companies operating in an oligopoly market structure where a small number of firms have significant market power and can influence market prices and decisions.

Interdependence

A situation where entities are dependent on each other, often observed in global economies where countries rely on others for resources, technology, or markets.

Price Takers

Firms or individuals who accept the market price as given and have no influence to alter the price of the good or service they are selling or buying.