Friedman Corporation had bonds outstanding with a maturity value of $500,000. On April 30, 2023, when these bonds had an unamortized discount of $10,000, they were called in at 104. To pay for these bonds, Friedman had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 103 (face value $500,000). Issue costs related to the new bonds were $3,000. All issue costs were capitalized. Friedman prepares financial statements in accordance with IFRS.

Instructions
Ignoring interest, calculate the gain or loss and record this refunding transaction.