| $1,000 gain. | |
 | $3,700 gain. |
| $2,700 gain. | |
| $1,000 loss. | |
| $2,700 loss. |
| Par value | $100,000 |
| Unamortized premium | 2,700 |
| Carrying value of bonds | $102,700 |
| Retirement price | 99,000 |
| Gain on retirement | $ 3,700 |
Wednesday, March 13, 2013
Accounting Midterm Exam ACG-2011: Question 72
A company has bonds outstanding with a par value of $100,000. The
unamortized premium on these bonds is $2,700. If the company retired
these bonds at a call price of 99, the gain or loss on this retirement
is:
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