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What amount should Omara report for the gain or loss

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Question - On June 30, 20X1, Omara Co. had outstanding 8%, $8,000,000 face amount, 15-year bonds. Interest is payable on June 30 and December 31. The unamortized balance in the bond discount account on June 30, 20X1 was $360,000. On June 30, 20X1, Omara acquired all of these bonds at the prevailing market price of 94 and retired them. What amount should Omara report for the gain or loss on this early extinguishment of debt?

a. $120,000 gain

b. $360,000 gain

c. $458,400 gain

d. $218,400 loss

Reference no: EM133015538

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