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What is loss that nixon should record on early retirement

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Question - Nixon Company's 10% bonds payable had a carrying value of $570,000 on December 31, 2016. The bonds, which had a face value of $600,000, were issued at a discount to yield 12%. The effective interest method is used to amortize the bond discount and interest is paid on January 1 and July 1 of each year. On July 2, 2017, Nixon retired the bonds at 102. The interest payment on July 1, 2017, was made as scheduled. What is the loss that Nixon should record on the early retirement of the bonds? Ignore taxes.

a. $12,000

b. $37,800

c. $33,600

d. $42,000

Reference no: EM132048984

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