Problem
On July 1, 2014, Miniature Company has bonds with balances as shown below.If the company retires the bonds for $66,150, what will be the effect on the income statement?
65, 000 bonds payable
3,250 premium on bonds payable
A. loss on retirement of $2,100
B. loss on retirement of $4,400
C. gain on retirement of $4,400
D. gain on retirement of $2,100