(Answered) Acme entertainment had 2000000 of callable bonds

Accounting

Acme Entertainment had $2,000,000 of callable bonds outstanding on December 31, 2017. The ten-year bonds were issued on January 1, 2010 for $2,150,000 and incurred $100,000 in bond issue costs. Acme can call the bonds at 101 anytime after January 1, 2016. The company uses straight-line amortization for bond issue costs and bond premium. Acme decides to call the bonds on January 2, 2018. Compute the gain or loss on early extinguishment of debt.

loss of $95,000
gain of $35,000
loss of $10,000
no gain or loss

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