accounting 450075

Aug 29, 2021 | Uncategorized

A $320,000 bond was redeemed at 103 when the carrying value of the bond was $332,480. What amount of gain or loss would be recorded as part of this transaction?

Select the correct answer.

loss on bond redemption of $12,480.
loss on bond redemption of $2,880.
gain on bond redemption of $12,480.
gain on bond redemption of $2,880.