If there is a loss on bonds redeemed early, it is
A) debited directly to Retained Earnings.
B) reported as an "Other income and expense" on the income statement.
C) reported as an "operating expense" 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 income and expense" on the income statement because it is not related to the primary operations of the business.

If There Is a Loss on Bonds Redeemed Early, It