A company has bonds outstanding with a par value of $140,000. The unamortized premium on these bonds is $3500. If the company retired these bonds at a call price of 98, the gain or loss on this retirement is:
A. $2800 loss.
B. $3500 loss.
C. $2800 gain.
D. $3500 gain.
E. $6300 gain.
Answer: E
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