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When Bonds Are Retired Prior to Maturity with Proceeds from a New

Question 1

Multiple Choice

When bonds are retired prior to maturity with proceeds from a new bond issue,gain or loss from the early extinguishment of debt,if material,should be


A) amortized over the remaining original life of the retired bond issue.
B) recognized in income from continuing operations in the period of extinguishment.
C) recognized as an extraordinary item in the period of extinguishment.
D) amortized over the life of the new bond issue.

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