The December 31, 2014, statement of financial position of Cotton Corporation includes the following: 9% bonds payable due December 31, 2023 $718,900 The bonds have a face value of $700,000, and were issued on December 31, 2013, at 103, with interest payable on July 1 and December 31 of each year.Cotton uses straight-line amortization to amortize bond premium or discount.On March 1, 2015, Cotton retired $280,000 of these bonds at 98 plus accrued interest.Ignoring income taxes, what should Cotton record as a gain on retirement of these bonds?

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The Answer of The December 31, 2014, statement of financial position of Cotton Corporation includes the following: 9% bonds payable due December 31, 2023 $718,900 The bonds have a face value of $700,000, and were issued on December 31, 2013, at 103, with interest payable on July 1 and December 31 of each year.Cotton uses straight-line amortization to amortize bond premium or discount.On March 1, 2015, Cotton retired $280,000 of these bonds at 98 plus accrued interest.Ignoring income taxes, what should Cotton record as a gain on retirement of these bonds?

The December 31, 2014, Statement of Financial Position of Cotton