Type of gain or loss from redemption

Reference no: EM13150020

Nickel Inc. owns $600,000 of 10-year, 8% bonds as an investment on December 31, 2010. The bonds have 3 years remaining to maturity. The unamortized premium remaining on these bonds was $48,000. Nickel uses straight-line amortization. On May 1, 2011, $120,000 of the bonds were redeemed at 111. How much, and what type of gain or loss, most likely results from this redemption?

Reference no: EM13150020

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