A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash,resulting in a loss of $3,000.The amount to be reported under cash flows from financing activities is:
A)$ (3,000).
B)$ 60,000.
C)$(57,000).
D)Zero.This is an operating activity.
E)Zero.This is an investing activity.

Question

Quizplus · Accepted Answer

The cash paid to retire the bonds, $60,000, is reported under cash flows from financing activities.

A Company Reported That Its Bonds with a Par Value