Bargain Company Has $1,500,000 of Bonds Outstanding

question 110

Multiple Choice

Bargain Company has $1,500,000 of bonds outstanding. The unamortized premium is $19,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?

• A) $4,600 gain
• B) $4,600 loss
• C) $15,000 gain
• D) $15,000 loss

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Definitions:

Companion Cells

Specialized cells in the phloem of plants that are closely associated with sieve tube elements and assist with the transport of photosynthetic products.

Pressure Flow Theory

A hypothesis explaining how sugars are moved from the leaves where they're produced to other parts of the plant through phloem.

Parenchyma

In plants, simple tissue composed of living, thin-walled cells; has various specialized functions such as photosynthesis.

Xylem

The vascular tissue in plants that conducts water and dissolved nutrients upwards from the root and also helps to form the woody element in the stem.