A $200,000,8% Bond Issue Was Sold at Face Value and Later

question 49

Multiple Choice

A $200,000,8% bond issue was sold at face value and later redeemed at 104.The corporation would have a:

• A)gain of $20,000.
• B)loss of $20,000.
• C)gain of $8,000.
• D)loss of $8,000.

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Definitions:

Personal Costs

Expenses directly paid by an individual, often relating to personal needs or desires, such as healthcare or education.

Macroeconomics

The branch of economics that studies overall economic dynamics, such as total national output, income, unemployment, and inflation.

Microeconomics

The branch of economics that studies individual, household, and firm behavior in decision making and allocation of resources.

Aggregate Markets

The entirety of all buyers and sellers in the economy, engaging in the trade of goods and services summed across all individual markets.