WILL RATE FAST:

E14.12B (LO 1,2) (Entry for Retirement of Bond; Bond Issue Costs) On January 1, 2015, Ladon Corporation issued $5,000,000 of 10% bonds at 102 due December 31, 2024. The premium on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "interest method".) The bonds are callable at 105 (i.e., at 105% of face amount), and on January 2, 2020, London called one-half of the bonds and retired them. Instructions Ignoring income taxes, compute the amount of loss, if any, to be recognized by London as a result of retiring the $2,000,000 of bonds in 2020 and prepare the journal entry to record the retirement