On January 1, 2018, Perriello Company issued $500,000 of 7%, five-year bonds payable at 101. Perriello Company has extra cash and wishes to retire the bonds payable on January 1, 2019, immediately after making the second semiannual interest payment. To retire the bonds, Perriello pays the market price of 96. Read the requirements. (Assume bonds payable are amortized using the straight-line amortization method.) Requirement 1. What is Perriello Company's carrying amount of the bonds payable on the retirement date? The carrying amount of the bonds payable on the retirement date is Requirements 1. What is Perriello Company's carrying amount of the bonds payable on the retirement date? 2. How much cash must Perriello Company pay to retire the bonds payable? 3. Compute Perriello Company's gain or loss on the retirement of the bonds payable. Print Done