Use the following information to answer the following questions: SMG Corporation had $1,000,000 of 10-year, 6% bonds

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Use the following information to answer the following questions: SMG Corporation had $1,000,000 of 10-year, 6% bonds outstanding on December 31, 2020. At that time the bonds had 3 years remaining to maturity. Interest is paid monthly and the unamortized premium remaining on these bonds was $90,000. SMG uses straight-line amortization, so the unamortized premium would be $60,000 on December 31, 2021, provided none of the bonds had been retired before that day

a. On May 1, 2021, $200,000 of the bonds were retired at 110. How much, and what type (operating or non-operating) of gain or loss, results from the retirement?

b. After making the interest payment on December 31, 2021, on the remainder of the bond issue, SMG redeemed those bonds with Ford shares from the company’s marketable securities portfolio with a cost of $725,000 and a current value of $825,000. Besides the $100,000 in realized gains related to holding those shares, how much gain or loss results from the settlement?