Question: Dott Manufacturing retired its $ 6,000,000 par value 7%, 10- year bonds early on February 28, 2012, for $ 6,720,408, including accrued interest of $

Dott Manufacturing retired its $ 6,000,000 7%, 10- year bonds early on February 28, 2012, for $ 6,720,408, including accrued interest of $ 70,000. The carrying value of the bonds at retirement was $ 6,330,956. What is the gain or loss on early retirement? Prepare the journal entry to record the derecognition of the obligation.

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