A $400,000 Bond Was Retired at 103 When the Carrying

question 33

Multiple Choice

A $400,000 bond was retired at 103 when the carrying amount of the bond was $408,000. The entry to record the retirement would include a

• A)gain on bond redemption of $12,000.
• B)loss on bond redemption of $4,000.
• C)loss on bond redemption of $12,000.
• D)gain on bond redemption of $4,000.

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Definitions:

Balance of Payments

A comprehensive record of all monetary transactions between a country and the rest of the world over a specific period, including trade, financial transfers, and investments.

Current Account

The section of a country's balance of payments that records the imports and exports of goods and services, net earnings from abroad, and net transfer payments over a period of time.

Goods Deficit

A situation where the value of a country's imports of goods exceeds the value of its exports of goods.

Money Inflow

The total amount of money coming into a business, an economy, or an individual's finances from various sources.