If there is a loss on bonds redeemed early, it is
A) debited directly to Retained Earnings.
B) reported as an "Other Expense" on the income statement.
C) reported as an "Extraordinary Item" on the income statement.
D) debited to Interest Expense, as a cost of financing.

Question

Quizplus · Accepted Answer

A loss on bonds redeemed early is reported as an "Other Expense" on the income statement because it is not considered an extraordinary item or a regular financing cost.

If There Is a Loss on Bonds Redeemed Early, It