On July 1, 2014, Miniature Company Has Bonds with Balances

question 11

Multiple Choice

On July 1, 2014, Miniature Company has bonds with balances as shown below. If the company retires the bonds for $66,150, what will be the effect on the income statement?

• A)gain on retirement of $4,400
• B)loss on retirement of $4,400
• C)gain on retirement of $2,100
• D)loss on retirement of $2,100

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Definitions:

Deductive Reasoning

The practice of deriving a conclusion from the unification of multiple assertions believed to be true.

Trial-And-Error

A problem-solving method involving repeated, varied attempts which continue until success, or until the agent stops trying.

Invincibility Fable

A cognitive bias commonly found in teenagers and young adults, characterized by the belief that they are exempt from common vulnerabilities and dangers.

Adolescent Egocentrism

A characteristic of adolescent thinking that leads to an over-focus on the self and a failure to recognize other people's perspectives.