Record as gain on retirement of bonds

Reference no: EM13158090

The December 31, 2010, balance sheet of Hess Corporation includes the following items:

9% bonds payable due December 31, 2019 $1,000,000 Unamortized premium on bonds payable 27,000

The bonds were issued on December 31, 2009, at 103, with interest payable on July 1 and December 31 of each year. Hess uses straight-line amortization. On March 1, 2011, Hess retired $400,000 of these bonds at 98 plus accrued interest. What should Hess record as a gain on retirement of these bonds? Ingore taxes.

A) $18,800.

B) $10,800.

C) $18,600.

D) $20,000.

Reference no: EM13158090

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