On March 31,2010,Bundy Corporation retired $10,000,000 of bonds which have an unamortized premium of $500,000,by repurchasing them for $9,850,000.How much was the gain or loss on the retirement of the bonds?

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A gain on bond retirement ($650,000) occurs because the amount paid ($9,850,000) is less than the book value of the bonds ($10,000,000 + $500,000).

On March 31,2010,Bundy Corporation Retired $10,000,000 of Bonds Which Have