Company has bonds outstanding with a par value of $140,000. The unamortized premium on these bonds is $3,500. If the company retired these bonds at a call price of $137,200, the gain or loss on this retirement is: A. $2,800 gain B. $2,800 loss C. $6,300 gain D. $3,500 gain E. $3,500 loss

Company has bonds outstanding with a par value of $140,000. The unamortized premium on these bonds is $3,500. If the company retired these bonds at a call price of $137,200, the gain or loss on this retirement is: A. $2,800 gain B. $2,800 loss C. $6,300 gain D. $3,500 gain E. $3,500 loss

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter22: Corporations: Bonds

Section: Chapter Questions

Problem 5CE

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Question

A. $2,800 gain

B. $2,800 loss

C. $6,300 gain

D. $3,500 gain

E. $3,500 loss

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