The 12% bonds payable of Keane Co

Management Jul 13, 2021

The 12% bonds payable of Keane Co. had a carrying amount of $832,000 on December 31, 2006. The bonds, which had a face value of $800,000, were issued at a premium to yield 10%. Keane uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2007, several years before their maturity, Keane retired the bonds at 104 plus accrued interest. The loss on retirement, ignoring taxes, is