A corporation retired $200,000 of bonds which have an unamortized premium of $8,000,by repurchasing them for $210,000.How much was the gain or loss on the retirement of the bonds?
A)There was a $10,000 loss.
B)There was a $2,000 loss.
C)There was a $10,000 gain.
D)There was an $18,000 loss.

Question

Quizplus · Accepted Answer

A loss on bond retirement ($2,000) occurs because the amount paid ($210,000) is greater than the book value of the bonds ($200,000 + $8,000).

A Corporation Retired $200,000 of Bonds Which Have an Unamortized