A Company Has Bonds Outstanding with a Par Value of $400,000.The

question 137

Multiple Choice

A company has bonds outstanding with a par value of $400,000.The unamortized premium on these bonds is $2,000.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)$10,000 gain
• C)$10,000 loss
• D)$14,000 gain
• E)$14,000 loss

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Definitions:

Spinal Column

The series of vertebrae extending from the skull to the lower back, encasing the spinal cord and providing structural support to the body.

Herniation

The abnormal protrusion of an organ or tissue through a structure or part that normally contains it.

Folic Acid

A B-vitamin essential for cell growth and metabolism, important for pregnant women to prevent neural tube defects in infants.

Prenatal Vitamin

A supplement specially formulated to support the health of both pregnant women and their developing fetuses, typically containing folic acid, iron, calcium, and other vitamins and minerals.