Nickel Inc. bought $500,000 of 3-year, 8% bonds as an investment on December 31, 2017...
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Nickel Inc. bought $500,000 of 3-year, 8% bonds as an investment on December 31, 2017 for $540,000. The investment receives interest annually and Nickel uses straight-line amortization. On May 1, 2018, the issuer retired $100,000 of the bonds at 115. As a result of the retirement, Nickel will report a: (Do not round intermediate calculations and round final answer to nearest whole dollar.)
Multiple Choice
$20,000 loss.
$20,000 gain.
$112,333 loss.
$7,889 gain.
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