Question
6 . A company has bonds outstanding with a par value of $200,000. The unamortized discount on these bonds is $4,500. The company retired bonds
6. A company has bonds outstanding with a par value of $200,000. The unamortized discount on these bonds is $4,500. The company retired bonds by buying them on the open market at $195,000. What is the gain or loss on this retirement?
A. $0 gain or loss
B. $5,000 loss
C. $5,000 gain
D. $500 loss
E. $500 gain
(show your work please)
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Handbook Of Key Global Financial Markets Institutions And Infrastructure
Authors: Gerard Caprio
1st Edition
0123978734, 9780123978738
