Godwin Corporation retires its bonds at 106 on January 1,after the payment of interest.The face value of the bonds is $600,000.The carrying value of the bonds at retirement is $619,500.The entry to record the retirement will include a:
A) debit of $36,000 to Premium on Bonds Payable.
B) debit of $19,500 to Premium on Bonds Payable.
C) credit of $16,500 to Gain on Retirement of Bonds.
D) credit of $16,500 to Loss on Retirement of Bonds.
Correct Answer:
Verified
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