6. A bond with a book value of $517,500 is retired (bought back) for $515,000. Which of the following statements is rect? a. The loss on the debt retirement is $32,500 b. The gain on the debt retirement is $2,500. c. The gain on the debt retirement is $32,500. d. The gain or loss on the debt retirement can't be determined without knowing the initial bond issue price. s omot bodso bloiy itoo a n 7. Which of the following statements is correct if treasury stock costing $25,000 was resold for $27,500? a. Total owners' equity increases $2,500. b. Total owners' equity increases $27,500. c. Net income increases $2,500. d. Total owners' equity increases $25,000. 8. Treasury stock is reported within the balance sheet as a. a long-term investment b. a short-term investment. c. an account contra to retained earnings. d. an account contra to owners' equity. 9. Which of the following is not a reason why a company would purchase its own stock? a. The company needs shares in order to meet employee stock option plans. b. The company's management may have concluded that the company's stock is undervalued at the prevailing market price. c. The company wants to increase its earnings per share. d. The company wants to manipulate its net income. 10. Cash dividends paid by a corporation a. are an expense of the corporation that declared the dividend. b. reduces the net income of the corporation that declared the dividend. c. reduces the retained earnings of the corporation that declared the dividend d. reduces the retained earnings of the corporation that declared the dividend because net income is reduced by the amount of the dividend