On December 31, 2013, the 11% bonds payable of Jenkins Corporation had a carrying amount...
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Accounting
On December 31, 2013, the 11% bonds payable of Jenkins Corporation had a carrying amount of $2,530,000. The bonds, which had a face value of $2,500,000 were issued at a premium to yield 10%. Jenkins uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On July 1, 2014, several years before their maturity, Jenkins retired the bonds at 102. The interest payment on June 30, 2014 was made as scheduled. The loss on retirement, ignoring taxes, is (PLEASE EXPLAIN ANSWER)
$ -0- $20,000 $31,000 $11,000
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