Question: I need help with this problem please! 38. On January 1, 2014, a company issued a 10-year, 10% semiannual coupon bond with a face value

I need help with this problem please!

I need help with this problem please! 38. On January 1, 2014,

38. On January 1, 2014, a company issued a 10-year, 10% semiannual coupon bond with a face value of $7,000,000 at a market rate of 12%. On December 31, 2016, the bonds were repurchased at 98. What should be reported as gain or loss on redemption on its 2016 income statement, assuming the effective interest rate method is used? a. $510,649 loss. b. $510,649 gain. c. $140,000 gain

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