A Company Has Bonds Outstanding with a Par Value of $100,000

question 18

Multiple Choice

A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,500. 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) $1,500 gain.
• C) $1,500 loss.
• D) $3,000 gain.
• E) $3,000 loss.

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Definitions:

Type 2 Diabetes

A chronic condition that affects the way the body processes blood sugar (glucose), characterized by insulin resistance.

Hyperglycemia

A condition characterized by an excessive amount of glucose in the bloodstream, often associated with diabetes mellitus.

Phospholipase C

An enzyme that plays a key role in cell signaling processes by hydrolyzing phospholipids to produce inositol triphosphate (IP3) and diacylglycerol (DAG), important secondary messengers.

Protein Kinase C

an enzyme that modifies other proteins by chemically adding phosphate groups to them, important in various cellular processes.