A $900,000 Bond Was Retired at 98 When the Carrying

question 288

Multiple Choice

A $900,000 bond was retired at 98 when the carrying value of the bond was $888,000. The entry to record the retirement would include a

• A) gain on bond redemption of $12,000.
• B) loss on bond redemption of $6,000.
• C) loss on bond redemption of $12,000.
• D) gain on bond redemption of $6,000.

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Definitions:

Intangibility

A characteristic of services that makes them unable to be seen, touched, tasted, felt, or measured in the same manner as physical goods.

Inseparability

A characteristic of service marketing that indicates the simultaneous production and consumption of a service, implying that services cannot be separated from their providers.

Services

Intangible and non-physical goods provided to consumers, including activities, benefits, or satisfactions offered for sale.

Service Continuum

Describes the range of offered services between pure tangible goods and pure services, showing how most products are a combination of both.