Zambrano Corp. decided to go into the market to repurchase bonds before their due date. The following are the balances of the accounts on the date of the retirement:
Bonds Payable $5,000,000
Bond Discount $30,000
Unamortized Bond Issue Cost $45,000
Cash Paid for Bonds $4,900,000
What is the gain or loss on the early extinguishment of the bonds?
A) $85,000 loss
B) $25,000 loss
C) $25,000 gain
D) No gain or loss is recognized.
Answer: C
Business
You might also like to view...
We consume ________ in the short term rather than the long term
A) unsought products B) specialty products C) raw materials D) durable goods E) nondurable goods
Business
The number of calls made on an account should most likely:
A) equate to the maturity of the product B) correspond to the seniority of the salesperson C) be the same for all accounts in the territory D) vary from salesperson to salesperson E) relate to the sales potential of the account
Business