Townson Co

question 162

Multiple Choice

Townson Co. has outstanding $100 million of 7% bonds, due in 7 years, and callable at 104. The bonds were issued at par and are selling today at a market price of 94. If Townson Co. calls $20 million of these bonds it will report:

• A) A $1,400,000 gain.
• B) A $800,000 loss.
• C) An unrealized gain.
• D) Neither gains nor losses are recognized on early retirements of debt.

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Definitions:

Particular Community

A specific group of individuals or populations living in a common geographical area or sharing similar characteristics or interests.

Keystone Species

A species whose presence and role within an ecosystem have a disproportionate effect on other organisms within the system.

Indicator Species

Species that serve as a measure of the environmental conditions of a habitat or ecosystem, often used to assess changes in environmental health.