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Question - On February 1, 2019, UML issued 10%, $1,000,000 bonds for $950,000. UML retired all of these bonds on January 1, 2020, at 97. Unamortized bond discount on that date was $20,000. How much gain or loss should be recognized on this bond retirement?
a. $10,000 loss.
b. $10,000 gain.
c. $20,000 loss.
d. $20,000 gain.
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