Question - On February 1, 2006 John Lovlace issued 10%, $1,000,000 bonds for $1,116,000 JLI retired all of these bonds on January 1, 2007, at 102. Unamortized bond premium on that date was $92,800. How much gain or loss should be recognized on this bond retirement?
$0 gain
$111,800 gain
$ 72,800 gain
$102,800 gain