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If Bonds with Face Value of $ 100,000 Are Redeemed

Question 246

Multiple Choice

If bonds with face value of $ 100,000 are redeemed at 98 before maturity when the amortized cost is $ 92,000, what would be the resulting gain or loss on the transaction?


A) loss of $ 1,840
B) loss of $ 6,000
C) gain of $ 6,000
D) gain of $ 1,840

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