Kraken Corporation issued 8% bonds with a par value of $1,000,000, receiving a premium of $20,000. On the interest date 5 years later, after the interest on the bond was paid and 40% of the premium was amortized, the corporation bought the entire issue on the open market at 99 and retired it. The gain or loss on this withdrawal is:

Answer rating: 100% (QA)

Lets start by calculating the premium amortization per year Premium 20000 Number of ... View the full answer