On Its December 31, 2014 Balance Sheet, Emig Corp

Multiple Choice

On its December 31, 2014 balance sheet, Emig Corp. reported bonds payable of $3,000,000 and related unamortized bond issue costs of $160,000. The bonds had been issued at par. On January 2, 2015, Emig retired $1,500,000 of the outstanding bonds at par plus a call premium of $35,000. What amount should Emig report in its 2015 income statement as loss on extinguishment of debt (ignore taxes) ?

A) $0
B) $35,000
C) $80,000
D) $115,000