A $300,000 Bond Was Redeemed at 98 When the Carrying

question 96

Multiple Choice

A $300,000 bond was redeemed at 98 when the carrying value of the bond was $295,000. The entry to record the redemption would include a

• A) loss on bond redemption of $5,000.
• B) gain on bond redemption of $5,000.
• C) gain on bond redemption of $1,000.
• D) loss on bond redemption of $1,000.

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Definitions:

Teaching

The act or profession of instructing or educating individuals or groups to impart knowledge or skills.

Medicine

The science and practice of diagnosing, treating, and preventing disease and injury in humans.

Releasing Stimulus

A specific trigger that elicits a fixed action pattern or an innate behavior in animals.

Fixed Action Patterns

Innate, pre-programmed responses triggered by specific stimuli, observed in animals, which are carried out to completion once initiated and are common in mating and defensive behaviors.