On January 1, 2019, two years before maturity, Easton Company retires $400,000 of its 8.5% bonds payable at the current market price of 102 (102% of the bond face amount, or $400,000 x 1.02 = $408,000). The bond book value on January1, 2019, is $397,000 reflecting an unamortized discount of $3,000. Bond interest is presently fully paid and recorded up to the date of retirement. What is the gain or loss on retirement of these bonds?