Calculating Gains and Losses on Early Retirement of Debt

The data below pertain to bonds outstanding at $2020$ year$$end$.$ For each of the following outstanding bonds, determine whether the company would record a gain or a loss if it decided to retire the bonds at the end of fiscal $2020.$ Calculate the amount of gain or loss.

Note: Use a negative sign to indicate a loss.

Face Value Premium $($Discount$)$ Fair Value Gain $($loss$)$ on Early Retirement

Firm $1$ $$990,000$ $$93,060$ $$1,104,816$ Answer $1$

$0$

Firm $22,200,000(151,875)2,084,460$ Answer $2$

$0$

Firm $3550,000-538,765$ Answer $3$

$0$

Firm $41,100,0004,4731,096,863$ Answer $4$

$0$