On January 1, 2009, Tiny Tim Industries Had Outstanding $1,000,000

question 11

Multiple Choice

On January 1, 2009, Tiny Tim Industries had outstanding $1,000,000 of 12% bonds with a carrying amount of $966,130. The indenture specified a call price of $981,000. The bonds were issued previously at a price to yield 14%. Tiny Tim called the bonds (retired them) on July 1, 2009. What is the amount of the loss on early extinguishment?

• A)$0.
• B)$6,932.
• C)$7,241.
• D)$7,629.

---

Definitions:

Creating

The process of bringing something new into existence or generating original ideas, objects, or productions through imaginative skill.

Process

A series of actions or steps taken to achieve a particular goal or outcome.

Measures of Variability

Quantitative indicators that describe the spread or dispersion within a dataset, including range, variance, and standard deviation.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data.