On January 1, 2009, Tiny Tim Industries had outstanding $1,000,000 of 12% bonds with a carrying amount of $966,130. The indenture specified a call price of $981,000. The bonds were issued previously at a price to yield 14%. Tiny Tim called the bonds (retired them) on July 1, 2009. What is the amount of the loss on early extinguishment?
A) $0.
B) $6,932.
C) $7,241.
D) $7,629.
Correct Answer:
Verified
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