21 MSG Corporation issued $100,000 of 3-year, 6% bonds outstanding on December 31, 2020 for $106,000. The bonds pay interest annually and MSG uses straight-line amortization. On May 1, 2021, $10,000 of the bonds were retired at 112. As a result of the retirement, MSG will report: A. a $600 loss. B. a $667 loss. C. a $1,200 loss. D. a $1,200 gain. 22. Diamond Corporation was organized on January 3, 2021. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2021, Diamond had the following transactions relating to shareholders' equity: Issued 30,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported net income of $100,000. Paid dividends of $50,000. What is total paid-in capital at the end of 2021? A. $420,000. B. $370,000. C. $470,000. D. $320,000. 26 Simon Company owned 20,000 shares of Brown Company that were purchased in 2019 for $500,000. On May 1, 2021, Simon declared a property dividend of 1 share of Brown for every 10 shares of Simon stock. On that date, there were 50,000 shares of Simon stock outstanding. The market Price of the Brown stock was $30 per share on the date of declaration and $32 per share on the date of distribution. By how much is retained earnings reduced by the property dividend?