The December 31, 2017, balance sheet of Hess Corporation includes the following items: 9% bonds...
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Accounting
The December 31, 2017, balance sheet of Hess Corporation includes the following items:
9% bonds payable due December 31, 2026 $5,000,000
Unamortized premium on bonds payable 135,000
The bonds were issued on December 31, 2016, at 103, with interest payable on July 1 and December 31 of each year. Hess uses straight-line amortization. On March 1, 2018, Hess retired $2,000,000 of these bonds at 98 plus accrued interest. What should Hess record as a gain on retirement of these bonds? Ignore taxes.
a. $94,000.
b. $54,000.
c. $93,000.
d. $100,000.
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