A Bond Issued with a Maturity Value of $200,000 and a Carrying

question 74

Multiple Choice

A bond issued with a maturity value of $200,000 and a carrying amount of $195,500 is paid off at 98.5 and retired.The gain or loss on this transaction is:

• A) $3,000 loss
• B) $3,000 gain
• C) $1,500 gain
• D) $1,500 loss

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Definitions:

Rubella

A contagious viral infection, also known as German measles, characterized by a rash and fever, and dangerous for pregnant women due to potential harm to the fetus.

Pregnancy

The state of carrying a developing fetus within the female body, typically lasting about 40 weeks from the last menstrual period to childbirth.

HIV

Human Immunodeficiency Virus, a virus that attacks the immune system and can lead to AIDS (Acquired Immunodeficiency Syndrome) if not treated.

AZT

A medication used to prevent and treat HIV/AIDS by interfering with the virus’s ability to replicate.