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On April 1, Fifedom, Inc

Question 96

Multiple Choice

On April 1, Fifedom, Inc. repurchased its $100,000 10-year, 9% bonds on the open market at 107. The bond's carrying value after accruing interest was $98,000 at the time of repurchase. The gain/loss on early retirement of the bonds is:


A) $2,000 gain.
B) $9,000 gain.
C) $9,000 loss.
D) $7,000 loss.

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