A company retired $500,000 of bonds,which have an unamortized discount of $10,000,by repurchasing them for $500,000.What is the amount of the gain or loss on the retirement of the bonds?

A) There was no gain or loss.
B) There was a $10,000 loss.
C) There was a $10,000 gain.
D) There was a $500,000 loss.

Retired

Indicates assets taken out of service or policies terminated.

Unamortized Discount

The portion of the bond discount that has not yet been expensed in the income statement over the bond's life.

Gain or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price or adjusted basis, could be positive (gain) or negative (loss).