A Company Has Bonds Outstanding with a Par Value of $100,000

question 18

Multiple Choice

A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,500. The company retired these bonds by buying them on the open market at 97. What is the gain or loss on this retirement?

• A) $0 gain or loss.
• B) $1,500 gain.
• C) $1,500 loss.
• D) $3,000 gain.
• E) $3,000 loss.

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Definitions:

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Twins who originate from the same fertilized egg, sharing the same genetic makeup and typically, but not always, exhibiting very similar physical and behavioral traits.

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A scientist who studies the genetic and environmental influences on behaviors, often through twin and adoption studies, to understand the heritability of traits.