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.

---

Definitions:

Amygdala

A brain structure that influences motivation, emotional control, fear responses, and interpretation of nonverbal, emotional expressions.

Central Nervous System

This refers to the part of the nervous system consisting of the brain and the spinal cord, responsible for processing and transmitting neural signals.

Stress-Related Networks

Systems or pathways within the body or mind that are activated or affected by stress, impacting health and behavior.

Fetal Alcohol Syndrome

A condition in a child that results from alcohol exposure during the mother's pregnancy, causing growth problems, facial anomalies, and cognitive deficits.