1)

On July 1, 2015, immediately after recording interest payments, Salsa, Inc. retired one fifth of its $503,000 of bonds payable for $97,800. The bonds were originally issued at par value in 2010. Which of the following statements is correct?

	A gain of $405,200 will be reported on the income statement.
	A loss of $2,800 will be reported on the income statement.
	Stockholders