Use the Following to Answer Questions

question 72

Short Answer

Use the following to answer questions
The Gordon Corporation issued $70,000 of 6%,5-year bonds on January 1,2016 at 98.The interest payments are due on December 31 each year.Gordon uses the straight-line method of amortization.
-On 12/31/20,Gordon Corporation makes the final entry to record interest and amortization.Immediately after that,Wise pays off the bonds as scheduled.Which of the following answers shows the effect of the bond payoff on the financial statements?

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