Q13

Question 13 (1 point) Saved On December 31st, 2020, the book value (i.e., balance sheet value) of Hanza Company's 8% notes payable was $1,260,000. On that date, Hanza decided to buy back (i.e., pay off early) the notes. Hanza had to pay $1,285,200 to retire the notes early. This transaction will produce a: O a) $25,200 income statement gain. O b) $25,200 income statement loss. O c) No gain or loss on the income statement. d) $100,800 income statement gain. O e) $100,800 income statement loss