Revision Company Has Just Made the Interest Payment on Its

question 69

Multiple Choice

Revision Company has just made the interest payment on its $3,000,000 of outstanding bonds. The unamortized discount is currently $127,400. Revision decided to retire the bonds by purchasing the bonds when the bonds were priced at 97. Which statement regarding the retirement is true?

• A)Revision paid $2,910,000 to purchase the bond and recognized a $37,400 loss.
• B)Revision paid $3,000,000 to purchase the bond and recognized a $164,800 loss.
• C)Revision paid $2,872,600 to purchase the bond and recognized a $127,400 loss.
• D)Revision paid $2,910,000 to purchase the bond and recognized a $164,800 loss.

Understand the relationship between supply and demand and its impact on price and quantity sold.

Recognize the role of equilibrium in the market and how it is established.

Identify factors that cause shifts in supply and demand curves, and understand their effects on market outcomes.

Appreciate the impact of governmental policies such as price floors, ceilings, and rent controls on market equilibrium.

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Definitions:

Congruence

The state or condition of being in agreement or harmony, often used in mathematics to describe figures that are identical in shape and size, and in psychology, it refers to the alignment between an individual's self-concept and reality.

Real Self

An individual's authentic self-concept free of societal influences and expectations, reflecting true personal interests, values, and desires.

Ideal Self

An individual's conception of themselves in their highest possible state of being or achievement, often contrasted with their real self.

Guided

Instructed or directed by someone with more experience or knowledge in a particular area.