On April 1, Fifedom, Inc. repurchased its $100,000 10-year, 9% bonds on the open market at 107. The bond's carrying value after accruing interest was $98,000 at the time of repurchase. The gain/loss on early retirement of the bonds is:
A. $9,000 loss.
B. $2,000 gain.
C. $9,000 gain.
D. $7,000 loss.
Answer: A
You might also like to view...
Describe the concept of sustainable marketing. How is it different from the marketing concept, the societal marketing concept, and the strategic planning concept?
What will be an ideal response?
If an investor can obtain more of a foreign currency for a dollar in the forward market than in the spot market, then the forward currency is said to be selling at a discount to the spot rate.
Answer the following statement true (T) or false (F)
A business that selects a differentiation strategy would necessarily structure itself around least-cost activities
Indicate whether the statement is true or false
Companies conducting a selection process are at risk of legal action from unhired candidates who claim they are victims of bias. What strategy can help to lower the risk of bias?
A) conducting unstructured interviews B) conducting Internet-based interviews C) conducting interviews by committee D) eliminating systematic scoring of interviews E) checking applicants' references and legal status