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.

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Definitions:

Arousal

A state of being physiologically alert and responsive to stimuli, often leading to increased physical activity and cognitive awareness.

Hypothalamus

A small region of the brain that plays a crucial role in many important functions, including releasing hormones, regulating body temperature, and maintaining daily physiological cycles.

Ghrelin

A hormone produced in the stomach that stimulates appetite and signals the brain to increase food intake.

Leptin

A hormone produced by fat cells that regulates body weight by signaling the brain to reduce appetite and increase energy expenditure.