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Acme entertainment had $1,200,000 of 6%, $1,000 par callable bonds outstanding on December 31, 2019, with a carrying value of $1,300,000. Acme decides to call
Acme entertainment had $1,200,000 of 6%, $1,000 par callable bonds outstanding on December 31, 2019, with a carrying value of $1,300,000. Acme decides to call the bonds on January 2, 2020. The call price is 105. Compute the gain or loss of early extinguishment of debt.
A. no gain or loss
B. gain of $40,000
C. loss of $60,000
D. loss of $100,000
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