The Titan retires a $24.9 million bond tssue when the carrying value of the bonds is $22.5 million, but the market value of the bonds Is $28.0 millon. The entry to record the retirement will Include:Multiple ChoiceNo gain or loss on retirement.A debit of $55 million to a loss accountA credit of S5.5 milion to a gain accountA credit to cash for $225 million.< Prev29 of 50Ne, >PsPs40%99+Type here to search*****PrIScF10F9F11F12F4RI&4.6.78T.PFKB N|組

Gain(Loss) = Carrying value - Market value when retired = 22.5 million - 28.0 million = 5.5 million…

The Titan retires a $249 million bond tssue when the carrying value of the bonds is $225 million, but the market value of the bonds is $28.0 millon. The entry to record the retirement will Include Multiple Choice O No gain or loss on retirement. A debit of $55 million to a loss account A credit of $55 milion to a gain account A credit to cesh for $225 million

The Titan retires a $249 million bond tssue when the carrying value of the bonds is $225 million, but the market value of the bonds is $28.0 millon. The entry to record the retirement will Include Multiple Choice O No gain or loss on retirement. A debit of $55 million to a loss account A credit of $55 milion to a gain account A credit to cesh for $225 million

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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The Titan retires a $24.7 million bond issue when the carrying value of the bonds is $21.9 million, but the market value of the bonds is $28.1 million. The entry to record the retirement will include: Multiple Choice A credit of $6.2 million to a gain account. No gain or loss on retirement. A credit to cash for $21.9 million. A debit of $6.2 million to a loss account.
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