On January 1. 2019, two years before maturity. Easton Company retires $400.000 of its 8.5% bonds...

  

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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 January 1, 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? 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 January 1, 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?