On May 1, 2013, Metro Company Has Bonds with Balances

question 36

Multiple Choice

On May 1, 2013, Metro Company has bonds with balances as shown below. If Metro retires the bonds for $52,000, what will be the effect on the income statement?

• A)There will be a loss on retirement of $3,140.
• B)There will be a gain on retirement of $3,140.
• C)There will be sales revenue of $3,140.
• D)There will be no effect on net income.

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Definitions:

Symmetric Joint Involvement

A condition or symptom in rheumatological disorders where joints on both sides of the body are equally affected.

Bony Protuberances

Outward or projecting parts of a bone, usually serving as points of attachment for muscles or ligaments.

Ballottement

A medical test where a part of the body is bounced between two hands to detect fluid accumulation or joint integrity.

Patella

Also known as the kneecap, it is a small bone located in front of the knee joint, providing protection and leverage for leg muscles.