Clabber Company Has Bonds Outstanding with a Par Value of $100,000

Multiple Choice

Clabber Company has bonds outstanding with a par value of $100,000 and a carrying value of $97,300.If the company calls these bonds at a price of $95,000,the gain or loss on retirement is:

A) $5,000 loss.
B) $2,700 gain.
C) $2,700 loss.
D) $2,300 loss.
E) $2,300 gain.