Chang Industries has bonds outstanding with a par value of $212,800 and a carrying value of $222,200. If the company calls these bonds at a price of $217,000, the gain or loss on retirement is:
A. $4200 gain.
B. $4200 loss.
C. $5200 loss.
D. $5200 gain.
E. $9400 gain.
Answer: D
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