Clabber company has bonds outstanding with a par value of $121,000 and a carrying value of $109,900. if the company calls these bonds at a price of $105,500, the gain or loss on retirement is:

gain of $4400

Step-by-step explanation:

carrying value= $109900

callable value= $105500

Since, the bond is callable it can be redeemed by the company before its maturity. The value at which the bond is redeemed is called callable value.

here the carrying value is higher than the callable value hence the balance will gain to the company.

Gain = carrying value-callable value= 109900-105500= $4400

it will cost dollar $540

the living room is 3 which means if we divide 325/3 then we get $108

therefore if 1part of the living room cost $108 and 3 costed $325

then total 5part of the room will cost 5*108 which gives $540