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A $600,000 Bond Was Retired at 98 When the Carrying

Question 107

Multiple Choice

A $600,000 bond was retired at 98 when the carrying value of the bond was $590,000.The entry to record the retirement would include a


A) credit to Cash for $588,000.
B) a debit to Loss on Bond Redemption of $10,000.
C) a debit to Discount on Bonds Payable for $8,000.
D) a debit to Gain on Bond Redemption of $2,000.

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