When a Company Retires Its Outstanding Bonds Prior to Their

Multiple Choice

When a company retires its outstanding bonds prior to their maturity by purchasing them in the secondary market:

A) a loss results when the purchase price is less than the carrying value of the bonds
B) any unamortized discount or premium is immediately charged to interest expense
C) the Bonds Payable account is debited for an amount equal to the maturity value of the bonds
D) a gain results when the carrying value of the bonds is less than the purchase price
Of the bonds