Clabber Company has bonds outstanding with a par value of $100,000 and a carrying value of $97,300. If the company calls these bonds at a price of $95,000, the gain or loss on retirement is:

A. $2,300 gain.
B. $2,300 loss.
C. $2,700 loss.
D. $2,700 gain.
E. $5,000 loss.


Answer: A

Business

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