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

Name: The loss on bond redemption is the difference between the cash paid and the carrying value of the bonds.
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

This statement is true. The loss on bond redemption is calculated as the difference between the cash paid to retire the bonds and the carrying value of the bonds on the balance sheet. If the cash paid is less than the carrying value, a loss is recognized on the income statement.

The Loss on Bond Redemption Is the Difference Between the Cash