A $100,000 Bond Was Retired at 97 When the Carrying

question 63

Multiple Choice

A $100,000 bond was retired at 97 when the carrying amount of the bond was $102,500. The entry to record the retirement would include a

• A)gain on bond redemption of $2,500.
• B)loss on bond redemption of $2,500.
• C)loss on bond redemption of $5,500.
• D)gain on bond redemption of $5,500.
• Use the information below to answer questions 134-136.
• Sun and Surf Inc issues $200,000 of 4%, 5-year bonds for cash proceeds of $182,940. The market interest rate is 6%. Interest is paid semi-annually.

---

Definitions:

Production Possibility Frontier

A visual map outlying the highest possible production levels for two goods, considering a defined compilation of resources and other relevant factors.

Minimum Quantity

The smallest amount of a product that can be ordered or purchased at one time.

Gain From Trade

The advantage or improvement in outcome that countries or individuals achieve through the act of trading goods or services.

Productive

Refers to the effectiveness in producing a significant amount of output per unit of input.