Question: On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 10% bonds with a book value of $973,500. The indenture specified a call price

On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 10% bonds with a book value of $973,500. The indenture specified a call price of $990,000. The bonds were issued previously at a price to yield 12% and interest payable semi-annually on July 1 and January 1. Tiny Tim called the bonds (retired them) on July 1, 2021. What is the amount of the loss on early extinguishment?

Multiple Choice

$0.
$7,745.
$8,090.
$8,410.

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