A $296,000 bond was redeemed at 103 when the carrying amount of the bond was $307,544. The entry to record the redemption would include a a.loss on bond redemption of $11,544. b.loss on bond redemption of $2,664. c.gain on bond redemption of $11,544. d.gain on bond redemption of $2,664

A $296,000 bond was redeemed at 103 when the carrying amount of the bond was $307,544. The entry to record the redemption would include a a.loss on bond redemption of $11,544. b.loss on bond redemption of $2,664. c.gain on bond redemption of $11,544. d.gain on bond redemption of $2,664

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 17MC: Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal...

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Question

A $296,000 bond was redeemed at 103 when the carrying amount of the bond was $307,544. The entry to record the redemption would include a

a.loss on bond redemption of $11,544.

b.loss on bond redemption of $2,664.

c.gain on bond redemption of $11,544.

d.gain on bond redemption of $2,664.

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