Kant Corporation retires its ($ 100,000) face value bonds at 105 on January 1, following the payment

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Kant Corporation retires its $\$ 100,000$ face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $\$ 103,745$. The entry to record the redemption will include a:

(a) credit of $\$ 3,745$ to Loss on Bond Redemption.

(b) debit of $\$ 3,745$ to Premium on Bonds Payable.

(c) credit of $\$ 1,255$ to Gain on Bond Redemption.

(d) debit of $\$ 5,000$ to Premium on Bonds Payable.

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Accounting Tools For Business Decision Making

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3rd Edition

Authors: Paul D. Kimmel

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Question Posted: May 14, 2024 02:00 AM

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Kant Corporation retires its ($ 100,000) face value bonds at 105 on January 1, following the payment

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Accounting Tools For Business Decision Making

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