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 premium on these bonds is $2,700. If the company retired these bonds at a call price of 99, the gain or loss on this retirement is:

A) $1,000 gain.
B) $1,000 loss.
C) $2,700 loss.
D) $2,700 gain.
E) $3,700 gain.