On June 30, 2014, Jazz Company had outstanding 8%, P3,000,000 face amount, 15 year bonds maturing on June 30, 2011. Interest is payable on June 30 and December 31. The unamortized balance on June 30,...

On June 30, 2014, Jazz Company had outstanding 8%, P3,000,000 face amount, 15 year bonds maturing on June 30,

2011. Interest is payable on June 30 and December 31. The unamortized balance on June 30, 2014 in the bond

discount was 135,000. Jazz reacquire all these bonds at 94 on June 30, 2014, and retire them. How much gain should

Jazz report on this early extinguishments of debt?

A. 45,000 B. 75,000 C. 105,000 D. 180,000