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On October 15, 2013, Rural Sales Has a Bond with Balances

Question 143

Multiple Choice

On October 15, 2013, Rural Sales has a bond with balances as shown below. On October 15, 2013, Rural Sales has a bond with balances as shown below. If Rural Sales wishes to retire the bonds for $82,000, what will be the effect on the income statement? A) Gain on retirement of $2,600 B) Loss on retirement of $2,600 C) Gain on retirement of $2,000 D) Loss on retirement of $2,000 If Rural Sales wishes to retire the bonds for $82,000, what will be the effect on the income statement?


A) Gain on retirement of $2,600
B) Loss on retirement of $2,600
C) Gain on retirement of $2,000
D) Loss on retirement of $2,000

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