Ask Question
15 May, 03:30

Douglas County Fairgrounds retires a $50 million bond issue when the carrying value of the bonds is $52 million, but the market value of the bonds is only $47 million. The entry to record the retirement will include:

+5
Answers (1)
  1. 15 May, 07:21
    0
    A credit of 5 million to gain account

    Explanation:

    In this question, we are asked to state the entry to record retirement.

    we employ a mathematical approach to this.

    Mathematically;

    Gain (Loss) on bond redemption

    = Carrying value of bonds - Cash paid

    From the question, we can identify a carrying value of 52 million and a market value of 47 million which is the cash paid

    = 52 million - 47 million

    = 5 million
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Douglas County Fairgrounds retires a $50 million bond issue when the carrying value of the bonds is $52 million, but the market value of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers