The bond premium was amortized on straight-line basis

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Reference no: EM13912010

On January 1, 2011, F Corp. issued 2,800 of its 9%, $1,000 bonds for $2,884,000. These bonds were to mature on January 1, 2021, but were callable at 101 any time after December 31, 2014. Interest was payable semi annually on July 1 and January 1. On July 1, 2016, F called all of the bonds and retired them. The bond premium was amortized on a straight-line basis. Before income taxes, F Corp.'s gain or loss in 2016 on this early extinguishment of debt was:

Reference no: EM13912010

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