A corporation recognizes a gain or loss
A) only when bonds are redeemed at maturity.
B) only when bonds are redeemed before maturity.
C) when bonds are redeemed at or before maturity.
D) when bonds are redeemed at maturity.

Question

Quizplus · Accepted Answer

A corporation recognizes a gain or loss when bonds are redeemed before maturity because the redemption price may differ from the carrying amount of the bonds.

A Corporation Recognizes a Gain or Loss