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The long-term liability section of Premier Digital Corporation's balance sheet as of December 31, 2011, included 12% bonds having a face amount of $200,000 and a remaining discount of $13,030. Disclosure notes indicate the bonds were issued to yield 14%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2012, Premier Digital retired the bonds at 103 before their scheduled maturity. What is the amount of gain (loss) on early extinguishment of bonds?

$(19,030)
$19,030
$(17,942)

• • $17,942

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91074375

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