The Titan retires a $24.6 million bond issue when the carrying value of the bonds is $21.4 million, but the market value of the bonds is $29.0 million. The entry to record the retirement will include:

A debit of $7.6 million to a loss account

Explanation:

Step 1. Given information.

Carrying value is 21.4 million Market value when retired is 29 million.

Step 2. Formulas needed to solve the exercise.

Gain (Loss) = Carrying value - Market value when retired

Step 3. Calculation.

= 21.4 million - 29 million

= 7.6 million

Step 4. Solution.

A debit of $7.6 million to a loss account