A Corporation Issued 8% Bonds with a Par Value of $1,000,000,receiving

question 100

Multiple Choice

A corporation issued 8% bonds with a par value of $1,000,000,receiving a $20,000 premium.On the interest date 5 years later,after the bond interest was paid and after 40% of the premium had been amortized,the corporation called the bonds at $990,000.The gain or loss on this retirement is:

• A)$0.
• B)$10,000 gain.
• C)$10,000 loss.
• D)$22,000 gain.
• E)$22,000 loss.