A Company Has Bonds Outstanding with a Par Value of $400,000.The

question 137

Multiple Choice

A company has bonds outstanding with a par value of $400,000.The unamortized premium on these bonds is $2,000.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)$10,000 gain
• C)$10,000 loss
• D)$14,000 gain
• E)$14,000 loss