On March 31, 2009, Bundy Corporation retires $10 million of bonds when they have unamortized premium of $500,000 by repurchasing them in the market at 98 ½. Calculate the gain or loss on the retirement of the bonds.
A) $150,000 loss.
B) $150,000 gain.
C) $650,000 loss.
D) $350,000 loss.
Which of the following is true?
A) Interest payments reduce cash flow from operating activities.
B) Calling the bonds would reduce cash from investing activities.
C) Issuance of bonds would increase cash from investing activities.
D) All of the above are true.
E) None of the above is true.
For each of the following types of inventory, enter a letter to indicate the type of business in which the inventory is more likely to appear.