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

question 88

Multiple Choice

Clabber Company has bonds outstanding with a par value of $100,000 and a carrying value of $97,300. If the company calls these bonds at a price of $95,000, the gain or loss on retirement is:

• A) $2,700 loss.
• B) $2,300 loss.
• C) $2,300 gain.
• D) $5,000 loss.
• E) $2,700 gain.

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