$5400 is loss on retirement.
If the price paid to retire a bond is greater than the carrying amount of bonds, the issuer recognizes a loss on retirement. But if the price paid is less than the carrying amount of the bonds at retirement, the issuer records a gain on retirement of bonds.
How to calculate gain or loss in retirement bonds?
Subtract the total amount you paid to retire the bonds from the bonds' net carrying value. A positive result represents a gain, while a negative result represents a loss.
Calculation:
Entry
Band payable $180, 00
Loss of retirement $5,400
Un-amortized discount $3, 400
Cash $181,800
To know more about loss on retirement, click on https://brainly.com/question/29801212
#SPJ4
