Redemption of Bonds Reynolds Corporation issued $60,000 face value bonds at a discount of $2,500. The bonds contain a call price of 103. Reynolds decides to redeem the bonds early when the unamortized discount is $1,750.

The redemption price would be $ ------ compared to the carrying value of $ which would result in aloss on bond redemption . This would be listed on the income statement and would not be listed with the extraordinary items. It would be considered as part of operating income .