I found this in my notes (title). Apparently the correct response i that the company will record a gain in OCI. I do get the “gain” part, since it is a liability bein reduced, however, i don’t get the “recorded in OCI” part.
To me, OCI can include the below:
Unrealized gains/losses from Available for sale securities
Unrealized gains/losses from hedging instruments
Adjustments for minimum pension liability
Adjustments from foreign exchange translations
Where does “bonds payable” fit in the list above?