A company reported that its bonds with a face value of $50,000 and a carrying value of $53,000 are retired for $56,000 cash.The amount to be reported under cash flows from financing activities is:
A)($53,000).
B)($3,000).
C)($56,000)
D)$0.This is an operating activity.

Question

Quizplus · Accepted Answer

The cash paid to retire the bonds, $56,000, is reported as a cash outflow under financing activities.

A Company Reported That Its Bonds with a Face Value