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CASE 5 On December 31, 2020, TAC Co. had an outstanding 12%, P5,000,000 face value bonds maturing on December 31, 2025. Interest was payable semiannually

CASE 5 On December 31, 2020, TAC Co. had an outstanding 12%, P5,000,000 face value bonds maturing on December 31, 2025. Interest was payable semiannually every June 30 and December 31. On December 31, 2020, after amortization was recorded for the period, the unamortized bond discount and bond issue cost were P500,000 and P300,000, respectively. On that date, TAC acquired all its outstanding bonds on the open market at 98 and retired them. At December 31, 2020, what amount should TAC recognized as pretax loss on early extinguishment of bonds?

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