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

Multiple Choice

A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,500. The company retired these bonds by buying them on the open market at 97. What is the gain or loss on this retirement?

A) $1,500 loss.
B) $3,000 loss.
C) $3,000 gain.
D) $0 gain or loss.
E) $1,500 gain.