Scott Corporation issued $1,000,000, 8% bonds, receiving a $30,000 premium. On the interest payment date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the openmarket at 95 and retired the issue. As a result, the gain on retirement was:

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The Answer of Scott Corporation issued $1,000,000, 8% bonds, receiving a $30,000 premium. On the interest payment date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the openmarket at 95 and retired the issue. As a result, the gain on retirement was:

Scott Corporation Issued $1,000,000, 8% Bonds, Receiving a $30,000 Premium