On January 1, Russel Corp. issued 8-year bonds with a face value of $100,000 and a stated annual coupon rate of 6%, payable semiannually on June 30 and Dec. 31 of each year. The bonds were sold to yield an annual effective market rate of 8%. Present values interest factors from time-value-of-money tables are shown below. Note: If you use financial calculators instead of the interest factors below, the rounding error could be as much as $10.

0.627 Present value, single sum, 8 periods, 6%

0.540 Present value, single sum, 8 periods, 8%

0.623 Present value, single sum, 16 periods, 3%

0.534 Present value, single sum, 16 periods, 4%

6.210 Present value, ordinary annuity, 8 periods, 6%

5.747 Present value, ordinary annuity, 8 periods, 8%

12.561 Present value, ordinary annuity, 16 periods, 3%

11.652 Present value, ordinary annuity, 16 periods, 4%

These bonds will sell for a total price of:

(A) $88,356

(B) $99,983

(C) $112,544

(D) $81,330

(E) None of the above.

5. On January 1, 2020, Hart Co. redeemed (retired) its 15-year bonds of $500,000 par value for 102. They were originally issued on January 1, 2008 at 98 with a maturity date of January 1, 2023. The original bond issue costs relating to these bonds totaled $20,000. Hart amortized discounts, premiums, and bond issue costs up to the retirement date using the straight-line method. What amount of loss should Hart record in the redemption of these bonds (ignoring income taxes)?

(A) $0

(B) $10,000

(C) $12,000

(D) $16,000

(E) None of the above.