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What would be the resulting gain or loss on the transaction

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Reference no: EM132998635

Question -

A) A $258000 bond was retired at 98 when the amortized cost of the bond was $254560. The entry to record the retirement would include a

a. gain on bond redemption of $860.

b. loss on bond redemption of $1720.

c. loss on bond redemption of $860.

d. gain on bond redemption of $1720.

B) If bonds with face value of $100000 are redeemed at 97 before maturity when the amortized cost is $91700, what would be the resulting gain or loss on the transaction?

a. loss of $2751

b. gain of $2751

c. gain of $5300

d. loss of $5300

Reference no: EM132998635

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