Asked by
Gabriella Johnson
on Nov 18, 2024
Verified
A $300,000 bond was redeemed at 104 when the carrying amount of the bond was $316,000. The entry to record the redemption would include a
A) loss on bond redemption of $3,000
B) gain on bond redemption of $3,000
C) gain on bond redemption of $4,000
D) loss on bond redemption of $4,000
Bond Redemption
The process of repaying the principal amount of a bond at or before its maturity date.
Carrying Amount
The value of an asset or liability according to a company's financial statements, minus any depreciation or amortization.
- Acquire knowledge on how callable bonds are accounted for and the redemption of bonds.
Verified Answer
JE
Learning Objectives
- Acquire knowledge on how callable bonds are accounted for and the redemption of bonds.