A Company Has Bonds Outstanding with a Par Value of $100,000

question 114

Multiple Choice

A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,500. The company retired these bonds by buying them on the open market at 97. What is the gain or loss on this retirement?

• A)$1,500 loss.
• B)$3,000 loss.
• C)$3,000 gain.
• D)$0 gain or loss.
• E)$1,500 gain.

Gain knowledge on the Charter of Rights and Freedoms, including its provisions against discrimination.

Comprehend the significance of law in society.

Recognize the mobility rights of Canadians as guaranteed by the Charter of Rights and Freedoms.

Understand the legal framework surrounding voting rights and the conditions under which they may be limited.

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Definitions:

Scatter Diagram

A graphical representation of two variable data points that helps to determine the relationship between them.

Linear Relationship

A type of relation between two variables where the change in one variable is directly proportional to the change in another variable.

Cross-Classification Table

A table that displays the frequency distribution of variables to show how they are distributed across each other.

Nominal Variables

Categories without a natural order or rank, such as gender, race, or religion, used for labeling variables.