Question: Bonds payable are dated January 1, 2017, and are issued on that date. The face value of the bonds is $175,000, and the face rate

Bonds payable are dated January 1, 2017, and are issued on that date. The face value of the bonds is $175,000, and the face rate of interest is 8%. The bonds pay interest semiannually. The bonds will mature in five years. The market rate of interest at the time of issuance was 6%. Assume that the bonds are redeemed on December 31, 2017, at 104, when carrying value was $187,283.55. Calculate the gain or loss on bond redemption. Round your answer to two decimal places. Identify and analyze the effect of the bond redemption. Round your answers to two decimal places. If an amount box does not require an entry, leave it blank.

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