Question: bond with a $ 7 5 0 , 0 0 0 maturity value is immediately retired for $ 7 4 5 , 0 0 0

bond with a $750,000 maturity value is immediately retired for $745,000 plus accrued interest. The discount on bonds payable (bond
scount) at the retirement date is $25,500. Which of the following statements is correct?
Multiple Choice
The gain on the debt extinguishment is $30,500.
The gain on the debt extinguishment is $5,000.
The gain or loss on the debt extinguishment can't be determined without knowing the dollar amount of the accrued interest.
bond with a $750,000 maturity value is immediately retired for $745,000

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