A Company Has Bonds Outstanding with a Par Value of $400,000.The

Multiple Choice

A company has bonds outstanding with a par value of $400,000.The unamortized premium on these bonds is $2,000.The company retired these bonds by buying them on the open market at 97.What is the gain or loss on this retirement?

A) $0 gain or loss
B) $10,000 gain
C) $10,000 loss
D) $14,000 gain
E) $14,000 loss