What would be the gain or loss on the redemption

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Problem 1: Sandhill Co. has $4900000 of bonds outstanding. The unamortized premium is $70600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?

Option 1: $21600 gain

Option 2: $49000 gain

Option 3: $21600 loss

Option 4: $49000 loss

Reference no: EM132957244

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