On January 1, 2014, Dunbar Corporation, an 85%-owned subsidiary of Garfield Industries, received $48,055 for $50,000 of 8%, 5-year bonds it issued when the market rate was 9%. When Garfield Industries purchased these bonds for $47,513 on January 2, 2016, the market rate was 10%. Given the following effective interest amortization schedules for both companies, calculate the gain or loss on retirement and the interest adjustments to the issuer€™s income distribution schedules over the remaining term of the bonds.

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Dunbar issuer) Discount Amortization 5 48,380 49,120 Garfield (purchaser) Discount Amortization Interest ( 1 0%} Interest [8 $47,513 48,264 49,090 50,000* 2 8 2 6 4 Adjusted for rounding