On July 1, 2015, immediately after recording interest payments, Salsa, Inc. retired one fifth of...
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Accounting
On July 1, 2015, immediately after recording interest payments, Salsa, Inc. retired one fifth of its $521,000 of bonds payable for $99,600. The bonds were originally issued at par value in 2010. Which of the following statements is correct?
Stockholders equity is not affected by the bond retirement.
A loss of $4,600 will be reported on the income statement.
A gain of $4,600 will be reported on the income statement.
A gain of $421,400 will be reported on the income statement.
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