A $300,000 Bond Was Retired at 98 When the Amortized

question 48

Multiple Choice

A $300,000 bond was retired at 98 when the amortized cost of the bond was $296,000. The entry to record the retirement would include a

• A) gain on bond redemption of $4,000.
• B) loss on bond redemption of $2,000.
• C) loss on bond redemption of $4,000.
• D) gain on bond redemption of $2,000.

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Definitions:

Total Income

The sum of all earnings or revenues received by an individual or organization before any deductions or taxes.

Compensation of Employees

All forms of financial returns and tangible services and benefits employees receive as part of an employment relationship.

Human Capital

The collective skills, knowledge, and experience of an individual or workforce, viewed as an asset.

Proprietors

Owners of a business or holders of property.