Whataburger Franchise wants to improve its Debt to Equity ratio, so it decides to retire...
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Accounting
Whataburger Franchise wants to improve its Debt to Equity ratio, so it decides to retire a $24 million bond issue. At the time of retirement, the market value of the bonds was $33 million and the carrying value of the bonds is $32 million. Which of the following would be included in the journal entry to record the retirement of the bonds?
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A debit of $1 million to a loss account.
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A credit of $1 million to a gain account.
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No gain or loss on retirement.
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A credit to cash for $32 million
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