Most likely results from this redemption

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Reference no: EM13787676

Nickel Inc. bought $400,000 of 3-year, 9% bonds as an investment on December 31, 2012 for $436,000. Nickel uses straight-line amortization. On May 1, 2013, $80,000 of the bonds were redeemed at 115. How much, and what type of gain or loss, most likely results from this redemption? (Do not round your intermediate calculation.)

$5,600 extraordinary gain.

$5,600 ordinary loss.

$5,600 extraordinary loss.

$5,600 ordinary gain.

Reference no: EM13787676

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