A bond with a face value of $300,000 is redeemed at 103 when the amortized cost (
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Question:
A bond with a face value of $300,000 is redeemed at 103 when the amortized cost ( carrying value ) of the bond is $315,000. The journal entry to record the redemption would include:
A) A loss on bond redemption of $6,000
B) A gain on bond redemption of $6,000
C) A gain on bond redemption of $9,000
D) A loss on bond redemption of $9,000
A corporation has Bonds Payable with a face value of $1,000,000 and an amortized cost
( carrying value ) of $985,000. If the corporation redeems the bonds at 97.5, what is the gain or loss on redemption?
A) $10,000 loss
B) $10,000 gain
C) $25,000 loss
D) $25,000 gain
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