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On January 1, 2020, Sandollar Inc, issued $48.000 of bonds at 98, paying 8% cash interest semiannually on June 30 and December 31. The bonds
On January 1, 2020, Sandollar Inc, issued $48.000 of bonds at 98, paying 8% cash interest semiannually on June 30 and December 31. The bonds are scheduled to mature December 31, 2023. The straight-line interest method is used to amortize bond discounts or premiums. On June 30. 2021, the bonds have a remaining discount of $600. On July 1. 2021, 548.000 of the bonds were retired when the bonds were selling at 101.
The amount of gain or loss on the early redemption of the bonds is
- A gain of $480.
- A gain of $1.080.
- A loss of $480.
- A loss of $1.080
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