Soap Company Issued $200,000 of 8%, 5-Year Bonds on January

Multiple Choice

Soap Company issued $200,000 of 8%, 5-year bonds on January 1, 2016.The discount on issuance was $12,000.Bond interest is paid annually on December 31.On December 31, 2018, Pumice Company purchased one-half of the outstanding bonds for $96,000.Both companies use the straight-line method of amortization. ​
What amount of gain or loss from retirement of debt will be reported on the 2018 consolidated financial statements?

A) ​$1,600 gain
B) ​$1,600 loss
C) ​$1,200 gain
D) ​$1,200 loss