A Company Reported That Its Bonds with a Par Value

question 40

Multiple Choice

A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash,resulting in a loss of $3,000.The amount to be reported under cash flows from financing activities is:

• A)$ (3,000).
• B)$ 60,000.
• C)$(57,000).
• D)Zero.This is an operating activity.
• E)Zero.This is an investing activity.