The carrying amount of a Bond Payable is $250,000. The bond has a nominal value of $280,000. The firm which issued the Bond Payable now wishes to Repurchase the Bond. It wishes to make a gain of exactly $20,000 on the Repurchase of the Bond. How much should the firm pay in cash to Repurchase the Bond in order to make a Gain on Repurchase of $20,000:

(note: Repurchase is also called Settlement)

Select one:

a. None of the above

b. $230,000

c. $290,000

d. $260,000

e. $270,000