Michael company issued 8% bonds with a par value of 1,000,000 receiving 20,000 premium on the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is:
a. $10,000 gain.
b. $22,000 loss.
c. $10,000 loss.
d. $22,000 gain.
e. $0.
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