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:

Professional Networks

Online platforms or offline groups that connect individuals within the same industry or profession for networking, opportunities, and knowledge exchange.

Social Networking

The use of internet-based applications and websites to build social relations with others who share similar interests or activities.

Professional Messaging Guidelines

A set of rules or suggestions designed to enhance effective and appropriate communication in a professional context.

Abbreviations

Shortened forms of words or phrases used to simplify communication, often consisting of the initial letters of a series of words.