Bonds Payable has a balance of $951,000 and Discount on Bonds Payable has a balance of $11,412. If the issuing corporation redeems the bonds at 98, what is the amount of gain or loss on redemption? a.$7,608 loss b.$7,608 gain c.$11,412 gain d.$11,412 loss

Bonds Payable has a balance of $951,000 and Discount on Bonds Payable has a balance of $11,412. If the issuing corporation redeems the bonds at 98, what is the amount of gain or loss on redemption? a.$7,608 loss b.$7,608 gain c.$11,412 gain d.$11,412 loss

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 15MC: Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018,...

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Question

Bonds Payable has a balance of $951,000 and Discount on Bonds Payable has a balance of $11,412. If the issuing corporation redeems the bonds at 98, what is the amount of gain or loss on redemption?

a.$7,608 loss

b.$7,608 gain

c.$11,412 gain

d.$11,412 loss

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