When a company retires debt, which of the following is not an accurate statement?

Multiple Choice

If the debt was recorded using the fair value accounting option, there is no opportunity for a gain or loss.

If the debt is retired at maturity, there is no opportunity for a gain or loss.

If a company finances the early retirement of debt by issuing new debt, GAAP prohibits recording a gain on the early retirement.

If a company retires debt early by issuing new debt at a lower market rate of interest, a gain on the extinguishment of debt will be recorded if the company did not elect to use the fair value accounting option.