The loss on bond redemption is the difference between the cash paid and the carrying value of the bonds.

Question

Quizplus · Accepted Answer

This is correct. The carrying value of the bonds represents the book value of the bonds on the issuing company's balance sheet, and the cash paid represents the actual amount of money paid to bondholders upon redemption. If the cash paid is less than the carrying value, the issuing company will experience a loss on bond redemption.

The Loss on Bond Redemption Is the Difference Between the Cash