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) $(7,000).
B) $7,000.
C) $(57,000).
D) $(60,000).
E) $(3,000).

Question

Quizplus · Accepted Answer

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

A Company Reported That Its Bonds with a Par Value