(Answered) On january 1 2011 f corp issued 4000 of its 9 1000 bonds

Accounting

On January 1, 2011, F Corp. issued 4,000 of its 9%, $1,000 bonds for $4,126,000. These bonds were to mature on January 1, 2021, but were callable at 101 any time after December 31, 2014. Interest was payable semiannually on July 1 and January 1. On July 1, 2016, F called all of the bonds and retired them. The bond premium was amortized on a straight-line basis. Before income taxes, F Corp.'s gain or loss in 2016 on this early extinguishment of debt was:

$29,300 gain. $103,000 gain. $16,700 gain. $40,000 loss.

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