The loss on bond redemption is the difference between the cash paid and the carrying value of the bonds. False When bonds are converted into common stock, the carrying value of the bonds is transferred to paid-in capital accounts. Solution 1) true because The gain or loss is what you described above. The Carrying Value includes the Bonds Payable account plus the Bond Premium or less the Bond Discount balance at any time. 2) true the carrying value of the bonds is transferred to paid-in capital accounts => No gain or loss is recognized . .

1. The loss on bond redemption is the difference between the cash paid and the carrying value of
the bonds.
False
When bonds are converted into common stock, the carrying value of the bonds is transferred to
paid-in capital accounts.
True
Solution
1)
true because
The gain or loss is what you described above. The Carrying Value includes the Bonds Payable
account plus the Bond Premium or less the Bond Discount balance at any time.
2)
true
the carrying value of the bonds is transferred to paid-in capital accounts => No gain or loss
is recognized .