Question: A company redeems $ 1 , 0 0 0 , 0 0 0 face value bonds with a carrying value of $ 9 9 0

A company redeems $1,000,000 face value bonds with a carrying value of $990,000. If the call price is 104 the company will
reduce bonds payable by $1,000,000.
recognize a loss on the extinguishment of debt of $50,000.
recognize a gain on the extinguishment of debt of $10,000.
recognize a loss on the extinguishment of debt of $15,000.

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