Problem:
On April 30, 2010, one year before maturity, Red Products, Inc. retired $150,000 of 8% bonds payable at 103. The book value of the bonds on April 30 was $144,600. Bond interest was last paid on April 30, 2010.
Requirement:
Question: What is the gain or loss on the retirement of the bonds?
Note: Show supporting computations in good form.