Bonds Payable Has a Balance of $1,000,000 and Discount on Bonds

question 148

Multiple Choice

Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $10,000. If the issuing corporation redeems the bonds at 97 1/2 what is the amount of gain or loss on redemption?

• A) $10,000 loss
• B) $25,000 loss
• C) $25,000 gain
• D) $15,000 gain

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Definitions:

Synapse

The tiny gap between the axon of one neuron and the dendrite of another.

Fontanels

Soft spots on a baby's skull where the bones have not yet fused together, allowing the head to be more flexible during birth and continuing to grow during early childhood.

Pediatrician

A medical doctor specializing in the care, diagnosis, and treatment of children’s diseases and conditions from infancy through adolescence.

Grey Matter

Neural tissue in the brain and spinal cord, primarily made up of neuronal cell bodies, which is involved in muscle control and sensory perception such as seeing and hearing, memory, emotions, and speech.