A bond with a $750,000 maturity value is immediately retired for $745,000 plus accrued interest. The discount on bonds payable (bond discount) at the retirement date is $25,500. Which of the following statements is correct? a. the gain on the debt extinguishment is $ 5,000
b. the loss on the debt extinguishment is $ 20,500
c. the gain on the debt extinguishment is $ 30,500
d. the gain or loss on the debt extinguishment can't be determined without knowing the dollar amount of the accrued interest.
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