On January 1,2011,F Corp

question 39

Multiple Choice

On January 1,2011,F Corp.issued 2,000 of its 10%,$1,000 bonds for $2,080,000.These bonds were to mature on January 1,2021,but were callable at 101 any time after December 31,2014.Interest was payable semiannually on July 1 and January 1.On July 1,2016,F called all of the bonds and retired them.The bond premium was amortized on a straight-line basis.Before income taxes,F Corp.'s gain or loss in 2016 on this early extinguishment of debt was:

• A)$16,000 gain.
• B)$20,000 loss.
• C)$24,000 gain.
• D)$60,000 gain.

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Definitions:

Physiological Symptoms

Physical signs or changes in the body resulting from illness, disease, substance use, or psychological states.

Shy People

Individuals who experience discomfort or apprehension in social situations, often fearing judgment or negative evaluation from others.

Self-Conscious

Excessively aware of being observed or judged by others.

Inappropriate Behavior

Actions or conduct that are not suitable or proper in a given context or situation.