1. Didde Company issues $12,000,000 face value of bonds at 96 on January 1, 2013. The bonds are dated January 1, 2013, pay interest semiannually at 8% on June 30 and December 31, and mature in 10 years. Straight-line amortization is used for discounts and premiums. On June 30, 2016, the bonds are called (i.e. bought back) at 102. What gain or loss would be recognized on the called bonds? A) $1,200,000 loss B) $552,000 loss C) $672,000 loss D) $907,000 loss E) None of the above