A gain on bond redemption
A)is considered unusual and infrequent.
B)should be treated as part of operating income.
C)decreases a company's income.
D)is always included when predicting a company's future income.

Question

Quizplus · Accepted Answer

A gain on bond redemption is typically seen as a non-operating item and not reflective of the company's core business. As such, it should be treated as part of other income and not operating income. It would increase a company's net income as it represents a gain from a liability being extinguished. However, it would not necessarily always be included when predicting a company's future income as gains on bond redemption are not a recurring item.

A Gain on Bond Redemption