On January 1, 2014, Bass Inc.redeemed its 15-year, $900,000 par value bonds at 102. They were originally issued on January 1, 2002 at 98 with a maturity date of January 1, 2017. Bass amortizes bond discounts and premiums using the straight-line method.Ignoring income taxes, what amount of loss should Bass recognize on the redemption of these bonds?
A) $32,400
B) $21,600
C) $18,000
D) $14,400
Correct Answer:
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