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Firm A issued a $1,000,000 bond with a 20-year term at a discount. If the...

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Accounting

Firm A issued a $1,000,000 bond with a 20-year term at a discount. If the remaining amount of the discount on bonds payable is $100,000 after 10 years and firm A retires the bond at this point at 110 (or for cash of $1,100,000), then what is the loss/gain on this bond retirement?

Select one:

a. Gain of $200,000

b. Loss of $100,000

c. Gain of $100,000

d. Loss of $200,000

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