Redemption of Bonds Reynolds Corporation issued $75,000 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 Required: The redemption price would be 4,000 X compared to the carrying value of $40X which would result in a loss 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