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Blossom Company received proceeds of $355500 on 10-year, 6% bonds issued on January 1, 2019. The bonds had a face value of $340000, pay interest
Blossom Company received proceeds of $355500 on 10-year, 6% bonds issued on January 1, 2019. The bonds had a face value of $340000, pay interest annually on December 31, and have a call price of 102. Blossom uses the straight-line method of amortization. Blossom Company decided to call the bonds on January 1, 2021. What amount of gain or loss would Blossom report on their 2021 income statement?
$12400 loss
$5600 gain
$12400 gain
$5600 loss
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