Multiple Choice
Ervay Company has $875,000 of bonds outstanding. The unamortized premium is $12,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?
A) $3,850 gain
B) $3,850 loss
C) $8,750 gain
D) $8,750 loss
Correct Answer:
Verified
Correct Answer:
Verified
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