E$13\mathrm{.}12($LO $1,2)($Entry for Redemption of Bond$)$ On January $2,2020,$ Banno Corporation issued $$1,500,000$ of $10\%$ bonds at $97$ due December $31,2029.$ Interest on the bonds is payable annually

each December $31.$ The discount on the bonds is also being amortized on a straight$-$line basis over the $10$ years. $($Straight$-$line is not materially different in effect from the preferable "interest method."$)$

The bonds are callable at $101($i$.$e$.,$ at $101\%$ of face value$),$ and on January $2,2025,$ Banno called $$900,000$ face value of the bonds and redeemed them.

Instructions

Ignoring income taxes, compute the amount of loss, if any, to be recognized by Banno as a result of retiring the $$900,000$ of bonds in $2025$ and prepare the journal entry to record the redemption.

$($AICPA adapted$)$