Question: A bond with a $ 200,000 maturity value is immediatly retired for $ 212,000 plus accrued interest. The discount on bonds payable ( bond discount)

A bond with a $ 200,000 maturity value is immediatly retired for $ 212,000 plus accrued interest. The discount on bonds payable ( bond discount) at the retirement date is $ 15,5000. Which of the following statement is correct?

a- the gain on the debt extinguishment is $ 5,000

b- the loss on the debt extinguishment is $ 20,500

c- the gain on the debt extinguishment is $ 30,500

d- the gain or loss on the debt extinguishment can't be determined without knowing the dollar amount of the accrued interest.

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