On June 1, 2007, Sunderland Inc. purchased as a long-term investment 400 of the $1,000 face value, 8% bonds of Stateline Corporation for $364,547. The bonds were purchased to yield 10% interest. Interest is payable semiannually on December 1 and June 1. The bonds mature on June 1, 2013. Sunderland uses the effective-interest method of amortization. On November 1, 2008, Sunderland sold the bonds for $392,500. This amount includes the appropriate accrued interest. Sunderland intended to hold these bonds until they matured, so year-to-year market value fluctuations were ignored in accounting for the bonds.

Instructions:
Prepare a schedule showing the income or loss before income taxes from the bond investment that Sunderland should record for the years ended December 31, 2007, and 2008.