Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
-If a gain occurs on the early retirement of bonds, it is

Question

Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
-If a gain occurs on the early retirement of bonds, it is

Quizplus · Accepted Answer

If a gain occurs on the early retirement of bonds, it is reported on the income statement. This gain is calculated as the difference between the cash paid to retire the bonds and the carrying amount of the bonds on the date of retirement. The gain is recognized immediately in the period in which the retirement occurs and is reported as part of the income from continuing operations on the income statement.

Use the Present Value and Future Value Tables Included in Appendix