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pishuonlain [190]
3 years ago
15

The Viper retires a $40 million bond issue when the carrying value of the bonds is $42 million, but the market value of the bond

s is $36 million. The entry to record the retirement will include:
Business
1 answer:
Airida [17]3 years ago
5 0

Answer:

The retirement of bonds includes a credit of $6 million to gain account.

Explanation:

Gain on retirement = Book value of bonds - Market value of bonds

Gain on retirement = $42 million - $36 million

Gain on retirement = $6 million

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