A Corporation Issued 8% Bonds with a Par Value of $1,000,000,receiving

question 155

Multiple Choice

A corporation issued 8% bonds with a par value of $1,000,000,receiving a $20,000 premium.On the interest date five years later,after the bond interest was paid and after 40% of the premium had been written off,the corporation purchased the entire issue on the open market at 99 and retired it.The gain or loss on this retirement is:

• A)$0
• B)$10,000 gain
• C)$10,000 loss
• D)$22,000 gain
• E)$22,000 loss

Identify and analyze information gaps within the context of research.

Understand the various types of search engines and their specific functions.

Identify strategies to refine search-engine queries for optimal results.

Grasp the concept of Fair Use in the context of using others' works.

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Definitions:

Parent Company

A corporation that owns more than 50% of the voting stock of another company, giving it control of the subsidiary's operations and strategic direction.

Voting Stock

Shares that give the shareholder the right to vote on company matters, such as electing the board of directors.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Equity Methods

An accounting technique used for recording investments in associate companies where the investor has significant influence but does not have full control or majority ownership, typically implying ownership of 20% to 50% of the voting stock.