What is the amount of gain or loss on redemption

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Question - Bonds payable has a balance of $900,000 and premium on bonds payable has a balance of $20,000. If the issuing corporation redeems the bonds at 102, what is the amount of gain or loss on redemption?

$2,000 Gain

$18,000 Loss

$20,000 Gain

$20,000 Loss

Reference no: EM132156305

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