Question
On April 30, 2021, one year before maturity, Pearson Corporation retired $500,000 of 6% bonds payable at 102. The book value of the bonds on
On April 30, 2021, one year before maturity, Pearson Corporation retired $500,000 of 6% bonds payable at 102. The book value of the bonds on April 30 was $492,500. Bond interest was last paid on April 30, 2021. What is the gain or loss on the retirement of the bonds?
Select one:
A. $7,500 gain
B. $7,500 loss
C. $17,500 gain
D. $17,500 loss
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365
