question archive Kraken Corporation issued 8% bonds with a par value of $1,000,000, receiving a $20,000 premium
Subject:BusinessPrice:3.87 Bought7
Kraken Corporation issued 8% bonds with a par value of $1,000,000, receiving a $20,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is:
$22,000 gain.
$10,000 gain.
$10,000 loss.
$-0-
none of the above
Purchased 7 times