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On May 1, 2013, Metro Company Has Bonds with Balances

Question 36

Multiple Choice

On May 1, 2013, Metro Company has bonds with balances as shown below. On May 1, 2013, Metro Company has bonds with balances as shown below. If Metro retires the bonds for $52,000, what will be the effect on the income statement? A) There will be a loss on retirement of $3,140. B) There will be a gain on retirement of $3,140. C) There will be sales revenue of $3,140. D) There will be no effect on net income. If Metro retires the bonds for $52,000, what will be the effect on the income statement?


A) There will be a loss on retirement of $3,140.
B) There will be a gain on retirement of $3,140.
C) There will be sales revenue of $3,140.
D) There will be no effect on net income.

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