$2.99 The generally accepted method of accounting for gains or losses from the earlyFound in Business: Accounting
Chapter 1, # 0
The generally accepted method of accounting for gains or losses from the early extinguishment of debt treats any gain or loss as
A) an amount received or paid to obtain a new debt instrument and, as such, should be amortized over the life of the new debt.
B) an amount that should be considered a cash adjustment to the cost of any other debt issued over the remaining life of the old debt instrument.
C) a difference between the reacquisition price and the net carrying amount of the debt which should be recognized in the period of redemption.
D) an adjustment to the cost basis of the asset obtained by the debt issue.
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- Posted on Feb. 02, 2012 at 12:32:29AM