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 Select one: 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

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 Select one: 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

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

100%

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

Select one:

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

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