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6. On January 1, 2014, Tonks Corporation issued $3,600,000 of 10% ten-year bonds at 103. The bonds are callable at the option of Tonks at
6. On January 1, 2014, Tonks Corporation issued $3,600,000 of 10% ten-year bonds at 103. The bonds are callable at the option of Tonks at 105. Tonks has recorded amortization of the bond premium on the straight-line method (which was not materially different from the effective-interest method). On December 31, 2020, when the fair value of the bonds was 96, Tonks repurchased $800,000 of the bonds in the open market at 96. Tonks has recorded interest and amortization for 2020. Ignoring income taxes and assuming that the gain is material, Tonks should report this reacquisition as. a loss of $39,200. a gain of $39.200 a loss of $48,800. a gain of $48.800
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