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On July 1,2022, immediately after recording interest payments, Salsa, Inc; retired one fifth of its $00,000 of bonds payable for $97,500. The bonds were originally
On July 1,2022, immediately after recording interest payments, Salsa, Inc; retired one fifth of its $00,000 of bonds payable for $97,500. The bonds were originally issued at face value in 2021 . Which of the following statements is correct? Stockbolders' equity is not affected by the bond retirement. A gain of $2,500 will be reported on the inconse statement. A loss of $2,500 will be reported on the income statement. Again of $402,500 will be reported on the income statement. A gain of $97,500 will be reported on the income statement
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