Nickel Inc. bought $100,000 of 3-year, 6% bonds as an investment on December 31, 2017...
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Nickel Inc. bought $100,000 of 3-year, 6% bonds as an investment on December 31, 2017 for $106,000. The investment receives interest annually and Nickel uses straight-line amortization. On May 1, 2018, the issuer retired $10,000 of the bonds at 110. As a result of the retirement, Nickel will report a:
a. $467 gain.
b. $467 loss.
c. $1,000 gain.
d. $5,000 loss.
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