A corporation retired $900,000 of bonds which have an unamortized discount of $30,000,by repurchasing them for $920,000.How much was the gain or loss on the retirement of the bonds?
A)There was a $50,000 loss.
B)There was a $10,000 loss.
C)There was a $10,000 gain.
D)There was a $20,000 loss.

Question

Quizplus · Accepted Answer

A loss on bond retirement ($50,000) occurs because the amount paid ($920,000) is greater than the book value of the bonds ($900,000 - $30,000).

A Corporation Retired $900,000 of Bonds Which Have an Unamortized