Mandel Corp B) C) D)

Mandel Corp. retired bonds payable with a carrying value of $980,000. What effect does this transaction have on these accounts?

A) $$\begin{array} { | l | l | l | } \hline \text { Total Assets } & \text { Total Liabilities } & \text { Shareholders' Equity } \\\hline \text { Decrease by } \$ 980,000 & \text { Increase by } \$ 980,000 & \text { No effect } \\\hline\end{array}$$
B) $$\begin{array} { | l | l | l | } \hline \text { Total Assets } & \text { Total Liabilities } & \text { Shareholders' Equity } \\\hline \text { Decrease by } \$ 980,000 & \text { Decrease by } \$ 980,00 & \text { No effect } \\\hline\end{array}$$
C) $$\begin{array} { | l | l | l | } \hline \text { Total Assets } & \text { Total Liabilities } & \text { Shareholders' Equity } \\\hline \text { Increase by } \$ 980,000 & \text { Decrease by } \$ 980,000 & \text { Increase by } \$ 980,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | l | } \hline \text { Total Assets } & \text { Total Liabilities } & \text { Shareholders' Equity } \\\hline \text { No effect } & \text { No effect } & \text { Decrease by } \$ 980,000 \\\hline\end{array}$$

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