If $500000 par value bonds with a carrying value of $476000 are redeemed at 97 a loss on redemption will be recorded.

Name: If $500000 par value bonds with a carrying value of $476000 are redeemed at 97 a loss on redemption will be recorded.
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Question

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The carrying value of the bonds is less than their par value, indicating that a discount has been recorded. Redeeming the bonds at 97, which is below their carrying value, will result in a loss on redemption.

If $500000 Par Value Bonds with a Carrying Value of $476000