Question: On July 1, 2021, Packard Technologies issued $9,000,000 face value, 6% bonds. The bonds mature on June 30, 2028 and pay interest semi-annually on June

On July 1, 2021, Packard Technologies issued $9,000,000 face value, 6% bonds. The bonds mature on June 30, 2028 and pay interest semi-annually on June 30 and December 31. At the time the bonds were issued, the market rate of interest on bonds of similar term and quality was 5.25%. Packard incurred $395,000 of bond issue costs in connection with issuing the bonds. The company uses the effective interest method to amortize bond premium or discount. On January 1, 2024, Packard called all of the bonds early at 101.

Required:

Rounded to the nearest whole dollar, enter the gain or loss Packard will record on redemption of the bonds.

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