Question: 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

A company has bonds outstanding with a 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. $14,000 loss
b. $14,000 gain
c. $10,000 gain
d. $0 gain or loss
e. $10,000 loss

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