On January 1, 2014, Robbins Company issued five-year, $500,000 face value, 8% bonds that paid interest every June 30th and December 31st. The market rate of other similar bonds was 10%. On December 31, 2017, Robbins redeemed the bonds at 102. What was the gain or loss on redemption. Assume that Robbins uses the effective interest method to amortize any premium or discount. (Select the closest answer to the one you calculate):

a, $23,619 loss

b. $19,300 loss

c. $14,765 loss

d. $13,656 loss

e. None of these answers are correct.

Which of the following is correct when determining whether we have a gain or loss on the redemption of a bond?

a. If the redemption price is greater than the carrying value of the bond, we have a loss.

b. If the redemption price is greater than the carrying value of the bond, we have a gain.

c. If the redemption price is greater than the par value of the bond, we have a loss.

d. If the redemption price is greater than the par value of the bond, we have a gain.

e. None of these answers are correct