15. On February 1, 2019, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $970,000. PWI retired all of these bonds on January 1, 2020, at 98. Unamortized bond discount on that date was $15,000. How much gain or loss should be recognized on this bond retirement?

a. 10,000 loss

b. 10,000 gain

c. 5,000 loss

d. 5,000 gain

19. Blue Co. recorded a right-of-use asset of $400,000 in a 8-year finance lease. Payments of $72,270 are made annually at the end of each year. The interest rate charged by the lessor was 9%. The balance in the lease payable after two years will be:

a. 238,332

b. 284,956

c. 324,196

d. 363,730