A corporation paid $104,000 to retire bonds with a face value of $100,000 and an unamortized premium balance of $3,000. The entry to record the early retirement of the bonds will include the recognition of a loss of

Question

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The loss is calculated as the amount paid to retire the bonds ($104,000) minus the carrying amount of the bonds (face value of $100,000 plus unamortized premium of $3,000), which equals $104,000 - $103,000 = $1,000.

A Corporation Paid $104,000 to Retire Bonds with a Face