A Company Has Bonds Outstanding with a Par Value of $600,000.The

question 189

Multiple Choice

A company has bonds outstanding with a par value of $600,000.The unamortized discount on these bonds is $3,000.The company retired these bonds by buying them on the open market at 98.What is the gain or loss on this retirement?

• A)$0 gain or loss
• B)$9,000 gain
• C)$9,000 loss
• D)$14,500 gain
• E)$14,500 loss

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Definitions:

Error

A discrepancy or mistake found in a document, calculation, or process.

Ending Inventory

The value of goods available for sale at the end of an accounting period, not yet sold.

GAAP

A set of rules and standards designed to improve and standardize accounting practices, making financial statements comparable across companies.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) for global use.