The Viper retires a $40 million bond issue when the carrying value of the bonds is $42 million, but the market value of the bonds is $36 million. The entry to record the retirement will include:

Finance

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The Viper retires a $40 million bond issue when the carrying value of the bonds is $42 million, but the market value of the bonds is $36 million. The entry to record the retirement will include:

A) A credit of $6 million to a gain account.

B) A debit of $6 million to a loss account.

C) No gain or loss on retirement.

D) A credit to cash for $42 million.

Answer: A

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