If bonds are redeemed on maturity date, any premium or discount        a. Is carried forward and written off in the same manner as that used prior to the maturity date.   b. Should be used to calculate the gain or loss resulting from the maturity of the bonds.   c. Should be written off directly to a bond retirement account as the bond will be redeemed.   d. Will be fully amortized as its amortization period is designed to coincide with the life of the bond issue.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter22: Corporations: Bonds
Section: Chapter Questions
Problem 10RQ: When bonds are redeemed before maturity, how is the gain or loss on redemption determined? Why does...
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If bonds are redeemed on maturity date, any premium or discount 
 
 
 
a. Is carried forward and written off in the same manner as that used prior to the maturity date.
 
b. Should be used to calculate the gain or loss resulting from the maturity of the bonds.
 
c. Should be written off directly to a bond retirement account as the bond will be redeemed.
 
d. Will be fully amortized as its amortization period is designed to coincide with the life of the bond issue.
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