Answer:
correct option is a. loss on bond redemption of $2,000
Explanation:
given data
bond = $300,000
redeemed at = 98
carrying value of bond = $292,000
to find out
entry to record the redemption would include
solution
we know here that Redemption value is
Redemption value = bond × redeemed
Redemption value = $300,000 ×98%
Redemption value =$294,000 ................1
and here Carrying value is $292,000
so we paid excess amount that is
paid excess amount = $294,000 - $292,000
paid excess amount = $2000
so here correct option is a. loss on bond redemption of $2,000
