On January 1, 2017, Moritz Company issued a five-year, $300,000, 6% bond that pays interest each January 1 and July 1. The market rate at the time of issuance was 7%. Assume that, on July 1, 2020, Moritz retired all of the bonds at 99. What gain or loss, if any, will Moritz recognize on the retirement of the bonds? (Round to the nearest dollar and choose the answer closest to your calculations).

$1,202 loss

$1,202 gain

$16,181 gain

None of the above

$16,181 loss

The price of zero-coupon bonds is

None of the above.

The present value of the principal payment at maturity

The present value of the principal payment at maturity less the present value of the interest payments.

The face value of the bond

The present value of the principal payment at maturity plus the present value of the interest payments.

Dorado Company is authorized to issue 1,000,000 shares of common stock. They issued 400,000 shares of $5 par value stock for $18 per share. They repurchased 100,000 shares at $20 per share and reissued 20,000 of the Treasury shares at $22 per share. Assuming no shares were retired, what is the number of shares outstanding?

300,000 shares

380,000 shares

900,000 shares

320,000 shares

Cannot be determined based on the information given