When bonds are called for retirement,any excess of the bonds' call price over the bonds' carrying value is reported as a gain on the income statement.

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When bonds are called for retirement, any excess of the bonds' call price over the bonds' carrying value is reported as a loss, not a gain, on the income statement. Conversely, if the carrying value exceeds the call price, the difference is reported as a gain.

When Bonds Are Called for Retirement,any Excess of the Bonds