at december 31 2014 the following balances existed on the books of the malloy corpor 610380

At December 31, 2014, the following balances existed on the books of the Malloy Corporation:

Bonds Payable

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$500,000

Discount on Bonds Payable

70,000

Interest Payable

12,500

If the bonds are retired on January 1, 2015, at 102, what will Malloy report as a loss on bond redemption?

  1. $92,500.
  2. $80,000.
  3. $67,500.
  4. $10,000.
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