When a company purchases and retires their outstanding bonds payable for an amount less than their book value,an increase in stockholders' equity results.

Name: When a company purchases and retires their outstanding bonds payable for an amount less than their book value,an increase in stockholders' equity results.
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Question

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When a company purchases their bonds for an amount less than book value, a gain results, which increases net income and therefore stockholders' equity.

When a Company Purchases and Retires Their Outstanding Bonds Payable