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Any Gains or Loss on the Early Retirement of Bonds

Question 7

Multiple Choice

Any gains or loss on the early retirement of bonds sold should be recorded as an) :


A) ordinary gain or loss reported on the income statement.
B) adjustment to financing activity on a statement of cash flows.
C) prior period adjustment, net of tax, shown on the statement of retained earnings.
D) other income/loss.

Correct Answer:

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