When the issuer of bonds exercises the call provision to retire the bonds,the excess of the cash paid over the carrying amount of the bonds should be recognized separately as a an)
A)Extraordinary loss
B)Extraordinary gain
C)Loss from continuing operations
D)Loss from discontinued operations

Question

Quizplus · Accepted Answer

The excess cash paid over the carrying amount of the bonds is recognized as a loss from continuing operations because it is related to the normal course of business activities.

When the Issuer of Bonds Exercises the Call Provision to Retire