SuperBowlInc retired $200,000 (par value)bonds with a carrying value of $203,492.The market value of the bonds was $202,500.The corporation recognized a loss on retirement of $2,500.

Question

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The loss on retirement of the bonds would be calculated as the carrying value of the bonds ($203,492) minus the market value at which they were retired ($202,500), which equals $992, not $2,500.

SuperBowlInc Retired $200,000 (Par Value)bonds with a Carrying Value of $203,492.The