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Century Ltd Has Outstanding Debentures with a Face Value of $50,000

Question 36

Multiple Choice

Century Ltd has outstanding debentures with a face value of $50,000. If Century redeems the debentures for $55,000 it must record:


A) a gain of $5,000.
B) a gain of $55,000.
C) a loss of $5,000.
D) a loss of $50,000.

Correct Answer:

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