What would ABC Corp gain or loss

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Question - On January 1, 2015, ABC Corp. issued 3,000 of its 7%, $1,000 bonds for total issue proceeds of $2,916,000. The bonds were set to mature on January 1, 2035 but were also callable at 101 + a specific call fee at any time after December 31, 2017. Interest was payable semi-annually on July 1 and January 1.  On December 1, 2020, ABC called 40% of the bonds and retired them. The call fee/expense was $18,000 (for the 40% of bonds that were called at that time). The bond discount was being amortized on a straight-line basis. What would ABC Corp.'s 2020 gain or loss on this extinguishment of its debt be before tax?

Reference no: EM132846700

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