If $500,000 face value bonds with an amortized cost of $476,000 are redeemed at 97, why will the company record a loss?

• A :

  because the bonds were sold at face value instead of at a discount

• B :

  it won't; instead, a gain on redemption should be recorded

• C :

  because the company is paying more than the amortized cost for the bonds

• D :

  because the bonds were sold at face value instead of at a premium