Revision Company Has Just Made the Interest Payment on Its

Multiple Choice

Revision Company has just made the interest payment on its $3,000,000 of outstanding bonds. The unamortized discount is currently $127,400. Revision decided to retire the bonds by purchasing the bonds when the bonds were priced at 97. Which statement regarding the retirement is true?

A) Revision paid $2,910,000 to purchase the bond and recognized a $37,400 loss.
B) Revision paid $3,000,000 to purchase the bond and recognized a $164,800 loss.
C) Revision paid $2,872,600 to purchase the bond and recognized a $127,400 loss.
D) Revision paid $2,910,000 to purchase the bond and recognized a $164,800 loss.