gain on retirement of bonds

The result of a corporation buying back its own bonds for an amount that is less than the carrying value of the bonds. The amount of the gain is computed by subtracting the amount spent to repurchase the bonds from the bonds' carrying value. The carrying value is usually the face amount of the bonds being retired plus the unamortized premium associated with the bonds being retired (or minus the bonds' unamortized discount) minus the bonds' unamortized issue costs.