the 10% bonds payable of Klein company had a net carrying amount of $570,000 on Dec 31, 2006. the bonds, which had a face value of $600,000 were issued at a discount to yeild 12%. the amortization of the bond discount was recorded under the effective interest method. interest was paid on January 1 and July 1 of each year. on July 2, 2007 was amde as scheduled. what is the loss that klein should record on the early retirement of the bonds on July 2, 2007. ignore taxes.
$12,000
$37,800
$33,600
$42,000
my answer: 37,800
thanks for any help!
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