Chang Industries Has Bonds Outstanding with a Par Value of $200,000

question 8

Multiple Choice

Chang Industries has bonds outstanding with a par value of $200,000 and a carrying value of $203,000. If the company calls these bonds at a price of $201,000, the gain or loss on retirement is:

• A) $1,000 loss.
• B) $3,000 gain.
• C) $2,000 loss.
• D) $2,000 gain.
• E) $1,000 gain.

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Definitions:

General Electric

General Electric is a multinational conglomerate corporation operating in sectors like aviation, power, renewable energy, and healthcare.

Ending Inventory

The pricing of available merchandise at the termination of an accounting interval, computed by taking the starting inventory, adding buying costs, and subtracting the cost of goods sold.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.

Direct Materials

The essential components or raw inputs used directly in the manufacture of goods, critical to the production process.