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:

Deceit

The act of misleading or deceiving someone intentionally.

False Representation

The act of making an untrue or misleading statement about a product, service, or situation which may deceive others.

Intention of Deceiving

The deliberate act of misleading or tricking someone to gain an advantage or cause harm.

Libel

A written or published defamatory statement or representation that conveys an unjustly unfavorable impression; a form of defamation.