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59) A corporation issued 8% bonds with a par value of $1,140,000, receiving a $48,000...

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Accounting

59) A corporation issued 8% bonds with a par value of $1,140,000, receiving a $48,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is:

A) $0. B) $40,200 gain.

C) $40,200 loss. D) $11,400 loss.

E) $11,400 gain.

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