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)$7,000.
E)($7,000).

Question

Quizplus · Accepted Answer

The amount of cash received from the retirement of bonds is $60,000, which is reported as a cash inflow from financing activities. The loss of $3,000 is a non-cash expense and is not reported in the cash flows statement.

A Company Reported That Its Bonds with a Par Value