What is the loss on retirement, ignoring taxes


On December 31, 2013, the 11% bonds payable of Goodly Corporation had a carrying amount of $2,060,000. The bonds, which had a face value of $2,000,000 were issued at a premium to yield 10%. Goodly uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On July 1, 2014, several years before their maturity, Goodly retired the bonds at 105. The interest payment on June 30, 2014 was made as scheduled. what is the loss on retirement, ignoring taxes ?

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Accounting Basics: What is the loss on retirement, ignoring taxes
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