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Ivanhoe Company received proceeds of $844000 on 10-year, 9% bonds issued on January 1, 2019. The bonds had a face value of $896000, pay interest
Ivanhoe Company received proceeds of $844000 on 10-year, 9% bonds issued on January 1, 2019. The bonds had a face value of $896000, pay interest annually on December 31, and have a call price of 102. Ivanhoe uses the straight-line method of amortization. Ivanhoe Company decided to redeem the bonds on January 1, 2021. What amount of gain or loss would Ivanhoereport on its 2021 income statement?
$59520 gain
$41600 loss
$59520 loss
$41600 gain
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