Usually, there is a gain or loss involved when bonds are redeemed before maturity. The gain or loss is the difference between

Question

Quizplus · Accepted Answer

The gain or loss is calculated by taking the amount paid to redeem the bonds (which includes any premium or discount) and subtracting it from the carrying value of the bonds (which is the face value of the bonds plus any unamortized premium or minus any unamortized discount).

Usually, There Is a Gain or Loss Involved When Bonds