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Scott Corporation Issued $1,000,000,8% Bonds,receiving a $30,000 Premium

Question 58

Multiple Choice

Scott Corporation issued $1,000,000,8% bonds,receiving a $30,000 premium.On the interest payment date 5 years later,after the bond interest was paid and after 40% of the premium had been amortized,the corporation purchased the entire issue on the open market at 95 and retired the issue.As a result,the gain on retirement was:


A) $12,000.
B) $13,000.
C) $18,000.
D) $68,000.
E) $130,000.

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