When bonds are retired before maturity,
A)only a loss on redemption can be recorded.
B)only a gain on redemption can be recorded.
C)either a gain or a loss on redemption can be recorded.
D)neither a gain nor a loss on redemption can be recorded.

Question

Quizplus · Accepted Answer

When bonds are retired before maturity, the redemption price may differ from the carrying amount, resulting in either a gain or a loss.

When Bonds Are Retired Before Maturity