Gain or loss recognized on bond retirement

Reference no: EM13149893

On February 1, 2010, Pat Weaver Inc. (PWI) issued 9%, $1,400,000 bonds for $1,700,000. PWI retired all of these bonds on January 1, 2011, at 102. Unamortized bond premium on that date was $142,800. How much gain or loss should be recognized on this bond retirement?

a) $0 gain.

b) $126,000 gain.

c) $153,000 gain.

d) $114,800 gain

Reference no: EM13149893

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