Nickel Inc. bought $200,000 of 3-year, 8% bonds as an investment on December 31, 2015...
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Nickel Inc. bought $200,000 of 3-year, 8% bonds as an investment on December 31, 2015 for $216,000. Nickel uses straight-line amoritization. On May 1, 2016, $40,000 of the bonds were redeemed at 111. As a result of the retirement, Nickel will report ( Do not round intermediate calculations and round final answer to nearest whole dollar.)
1.) $1,556 gain
2.) $8,000 gain
3.) $1,556 loss
4.) $8,000 loss
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