14

John Deere is an American manufacturer of agricultural, construction, and forestry machinery. John Deere retires a $40 million bond issue when the carrying value of the bonds is $42 milion, but the market value of the bonds is $36 million. The entry to record the retirement will include: Multiple Choice A credit of $6 million to gain account A credit to cash for $42 million No gain or loss on retirement A debit of $6 million to a loss account