A corporation issued 8% bonds with a par value of $1,080,000, receiving a $36,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation called the bonds at $1,069,200. The gain or loss on this retirement is:
A. $0.
B. $10,800 gain.
C. $32,400 gain.
D. $10,800 loss.
E. $32,400 loss.
Answer: C
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