how do you find the 3m from discount on bonds payable

The balance sheet of Indian River Electronics Corporation as of December 31, 2017, included 12.25% bonds having a face amount of $90 million. The bonds had been issued in 2010 and had a remaining discount of $3 million at December 31, 2017. On January 1, 2018, Indian River Electronics called the bonds before their scheduled maturity at the call price of 102. Required: Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2018. Step-by-step solution Step 1 of 8 A Early retirement of bonds The process of repaying the principal amount of bonds to bondholders before the maturity period is referred to as early redemption or retirement of bonds. Comment Step 2 of 8 A Prepare journal entries to recode the redemption of the bonds at January 1, 2018: Accounting equation: The following is the accounting equation for early retirement of bonds: Assets = Liabilities + Stockholders' Equity Loss on Early Bonds -$91,800,000(Cash) = $90,000,000 - $4,800,000 Retirement Payable of Bonds Discount on Bonds +$3,000,000 Payable