MSG Corporation has $100,000 of 10-year, 6% bonds outstanding on December 31,2010. The bonds have...
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MSG Corporation has $100,000 of 10-year, 6% bonds outstanding on December 31,2010. The bonds have 3 years remaining to maturity. The unamortized premium remaining on these bonds was $6,000. MSG uses straight-line amortization. on May 1, 2011, $10,000 of the bonds were retired at 112. How much, and what type of gain or loss, most likely results from this retirement?
A. $667 extraordinary gain B. $667 ordinary loss C. $667 ordinary gain D. $667 extraordinary loss
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