If there is a loss on bonds redeemed early the
A) loss is debited directly to Retained Earnings.
B) bonds' carrying value was less than the redemption price.
C) bonds' carrying value was greater than the redemption price.
D) loss is debited to Interest Expense as a cost of financing.

Question

Quizplus · Accepted Answer

A loss on early redemption of bonds occurs when the carrying value of the bonds is less than the redemption price, meaning the company pays more to redeem the bonds than their book value.

If There Is a Loss on Bonds Redeemed Early the