A company has bonds outstanding with a par value of $130,000. The unamortized premium on these bonds is $3,185. If the company retired these bonds at a call price of $128,700, the gain or loss on this retirement is: Multiple Choice O $1,300 gain. $3,185 loss. O$4.485 gain.

A company has bonds outstanding with a par value of $130,000. The unamortized premium on these bonds is $3,185. If the company retired these bonds at a call price of $128,700, the gain or loss on this retirement is: Multiple Choice O $1,300 gain. $3,185 loss. O$4.485 gain.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company has bonds outstanding with a par value of $130,000. The unamortized premium on these bonds is $3,185. If the company retired
these bonds at a call price of $128,700, the gain or loss on this retirement is:
Multiple Choice
O
O
$1,300 gain.
$3,185 loss.
$4,485 gain.

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