Answer:
d.Credit to gain on bond retirement for $10,800
Explanation:
Based on the information given we were told that the Company retired the amount of $900,000 which includes 7% bond issue at 98 which means that If the unamortized discount is $7,200, the journal entry will include a:Credit to gain on bond retirement for $10,800 calculated as
Dr bond payable $900,000
Cr Gain on retirement $10,800
[($900,000-$882,000)-($7,200)]
Cr Discount on Bond $7,200
Cr Cash $882,000
(98%*9/$900,000)
