Question
The Titan retires a $24.5 million bond issue when the carrying value of the bonds is $22.4 million, but the market value of the bonds
The Titan retires a $24.5 million bond issue when the carrying value of the bonds is $22.4 million, but the market value of the bonds is $28.9 million. The entry to record the retirement will include:
Multiple Choice
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No gain or loss on retirement.
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A credit of $6.5 million to a gain account.
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A credit to cash for $22.4 million.
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A debit of $6.5 million to a loss account.
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th Edition
978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018
