What amount should be reported in the income statement

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Problem 1: In the December 31, 2019 statement of financial position, Milo Company reported bonds payable of P12,000,000 and related unamortized bond issue cost of P645,000. The bonds had been issued at par. On January 1, 2020, the entity retired P6,000,000 of the outstanding bonds at par plus a call premium of P150,000. What amount should be reported in the 2020 income statement as loss on early extinguishment of debt?

a. 0
b. 150,000
c. 322,500
d. 472,500

Reference no: EM132806649

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