Gains and losses on the redemption of bonds are reported as other income (loss) on the income statement.

Name: Gains and losses on the redemption of bonds are reported as other income (loss) on the income statement.
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Question

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When a bond is redeemed at a price different from its carrying amount, the difference represents a gain or loss that is recognized in the income statement as other income (loss). Therefore, the statement is true.

Gains and Losses on the Redemption of Bonds Are Reported