1) On March 31, 2016, Bundy Company retired $10,600,000 of bonds, which have an unamortized premium of $600,000, by paying bondholders $10,400,000. What is the amount of the gain or loss on the retirement of the bonds?

A) $800,000 gain.

B) $400,000 loss.

C) $200,000 gain.

D) $200,000 loss.

2) A Company retired $660,000 of bonds, which have an unamortized discount of $26,000, by repurchasing them for $660,000. What is the amount of the gain or loss on the retirement of the bonds?

A) There was a $660,000 loss.

B) There was no gain or loss.

C) There was a $26,000 loss.

D) There was a $26,000 gain.

3) A Company retired $360,000 of bonds, which have an unamortized premium of $16,000, by purchasing them on the open market for $386,000. What is the amount of the gain or loss on the retirement of the bonds?

A) There was a $10,000 loss.

B) There was an $42,000 loss.

C) There was a $26,000 gain.

D) There was a $26,000 loss.