On June 30, 20X1, after paying the semiannual interest due and recording amortization of bond discount, Hake redeemed its 15-year, 8% $1,000,000 par bonds at 102. Hake has a policy to redeem bonds when it is advantageous to do so. The bonds, which had a carrying amount of $940,000 on January 1, 20X1, had originally been issued to yield 10%. Hake used the effective interest method of amortization and paid interest and recorded amortization on June 30. Compute the amount of gain or loss on the redemption of the bonds. O Hake will record a gain of $60,000 on the redemption of the bonds. Hake will record a loss of $73,000 on the redemption of the bonds.

On June 30,201, after paying the semiannual interest due and recording: amortiention of hond dincount, Hake redearned ite $5-year, 89s, $1,000.000 par bonds at 102 . Hake has a policy to cedeem bonds when it is advantageous to do so. The bonds, which had a carrying amount of recorded amortization on June 30 , Compute the amount of gain or logs on the redemption of the bonds. Hake will record a gain of $60.000 on the redemption of the bonds: Hake will record a lets of $73,000 on the redemption of the bonds