Kingston Corporation recently retired $1,000,000 worth of bonds early for $997,500.They reported a gain related to the retirement of the bonds of $24,250.What was the unamortized bond discount or premium at the time of retirement?

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The gain on the retirement of the bonds was $24,250, and the bonds were retired for $997,500, which is $2,500 less than their face value of $1,000,000. This means that the original bond issue must have been at a discount, and the unamortized amount of this discount at the time of retirement was the difference between the gain reported ($24,250) and the amount paid below par ($2,500), which equals $21,750. Therefore, it was a premium of $21,750.

Kingston Corporation Recently Retired $1,000,000 Worth of Bonds Early for $997,500.They