The 14% bonds payable of Marigold Corp. had a carrying amount of $4080000 on December...
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The 14% bonds payable of Marigold Corp. had a carrying amount of $4080000 on December 31, 2020. The bonds, which had a face value of $3920000, were issued at a premium to yield 12%. Marigold uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2021, several years before their maturity, Marigold retired the bonds at 104 plus accrued interest. The loss on retirement, ignoring taxes, is
$26400.
$0.
$44000.
$156800.
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