On June 30, 2011, Omara Co

question 45

Multiple Choice

On June 30, 2011, Omara Co.had outstanding 8%, $3,000,000 face amount, 15-year bonds maturing on June 30, 2021.Interest is payable on June 30 and December 31.The unamortized amount of the bond discount on June 30, 2011 was $135,000.On June 30, 2011, Omara acquired all of these bonds at 94 and retired them.What net carrying amount should be used in computing gain or loss on this early extinguishment of debt?

• A)$3,000,000.
• B)$2,955,000.
• C)$2,865,000.
• D)$2,820,000.

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Definitions:

Pricing

The process of determining the value that will be charged for goods or services offered to customers.

Perceived Value

The worth or importance a product or service holds in the mind of the consumer, which can influence their decision to purchase.

Marketing Mix

A set of controllable marketing tools—Product, Price, Place, and Promotion—that a company uses to produce a desired response from its target market.

Variety Of Products

A wide range of different items or goods offered by a business to meet various customer needs and preferences.