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The 10% bonds payable of Hanna Co. had a carrying amount of $4,160,000 on December 31, 2019. The bonds, which had a face value of
The 10% bonds payable of Hanna Co. had a carrying amount of $4,160,000 on December 31, 2019. The bonds, which had a face value of $4,000,000, were issued at a premium to yield 8%. Hanna uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2020, several years before their maturity, Hanna retired the bonds at 105 plus accrued interest. The loss on retirement, ignoring taxes, is
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