The situations presented here are independent of each other. For each situation, prepare the appropriate journal entry for the redemption of the bonds. Pelfer Corporation redeemed $160,000 face value, 10% bonds on April 30, 2014, at 105. The carrying value of the bonds at the redemption date was $144,571. The bonds pay annual interest, and the interest payment due on April 30, 2014, has been made and recorded.2-Youngman, Inc., redeemed $250,400 face value, 14.3% bonds on June 30, 2014, at 96. The carrying value of the bonds at the redemption date was $271,021. The bonds pay annual interest, and the interest payment due on June 30, 2014, has been made and recorded.

Answer and Explanation:

The Journal entry is shown below:-

1. Bonds payable Dr, $160,000

Loss on bond redemption Dr, $23,429

($160,000 × 1.05 - $144,571)

      To Discount on bond payable $15,429

($160,000 - $144,571)

      To Cash $168,000

($160,000 ÷ 100 × 105)

(Being redemption of bonds is recorded)

2. Bonds payable Dr, $250,400

Premium on bond payable Dr, $20,621

($271,021 - $240,384)

        To Gain on bond redemption $30,637

($271,021 - $240,384)

         To Cash  $240,384

($240,384 ÷ 100 × 96)

(Being redemption on bonds is recorded)

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported

c is the correct answer.