Retirement of Bonds

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A corporation issued 8% bonds with a par value of 1,000,000, receiving a $20,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been written off, the corporation purchased the entire issue on the open market at 99 and retired it The gain or loss to retirement is:

A 0

B 10,000 gain

C 10,000 loss

D 22,000 gain

E 22,000 loss