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The December 31, 2020, statement of financial position of Swift Corporation includes the following items: 9% bonds payable due December 31, 2028 P1,400,000 Unamortized premium

The December 31, 2020, statement of financial position of Swift Corporation includes the following items:

9% bonds payable due December 31, 2028

P1,400,000

Unamortized premium on bonds payable

37,800

The bonds were issued on December 31, 2018, at 103, with interest payable on July 1 and December 31 of each year. Swift uses straight-line amortization.

On March 1, 2020, Swift retired P560,000 of these bonds at 98 plus accrued interest. What should Swift record as a gain on retirement of these bonds?

a P26,320 b P28,000 c P26,040 d P15,120

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