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What should hess record as a gain

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Question - The December 31, 2020, balance sheet of Hess Corporation includes the following items:

9% bonds payable due December 31, 2026 $5,000,000

Unamortized premium on bonds payable 135,000

The bonds were issued on December 31, 2016, at 103, with interest payable on July 1 and December 31 of each year. Hess uses straight-line amortization. On March 1, 2021, Hess retired $2,000,000 of these bonds at 98 plus accrued interest. What should Hess record as a gain on retirement of these bonds? Ignore taxes.

a. $94,000.

b. $54,000.

c. $93,000.

d. $100,000.

Reference no: EM133074772

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