Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
-A $100,000 bond with a carrying value of $104,000 was called at 107 and retired. In recording the retirement, the issuing company should

Question

Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
-A $100,000 bond with a carrying value of $104,000 was called at 107 and retired. In recording the retirement, the issuing company should

Quizplus · Accepted Answer

To determine the gain or loss on retirement of the bond, we need to compare the carrying value of $104,000 to the amount paid to retire the bond, which is $107,000. 
$107,000 - $104,000 = $3,000 loss. 
Therefore, the company should record a $3,000 loss on the retirement of the bond. The correct option is B.

Use the Present Value and Future Value Tables Included in Appendix