Problem:
Bonds with the following characteristics are retired on January 1, 2005, at 104: Issue date: January 1, 2004; maturity date: January 1, 2009; face value: $300,000; bond issue costs: $5,000, amortized semiannually using the straight-line method of amortization. The unamortized bond discount is $8,500 as of January 1, 2005.
Required:
Question: What is the amount of the gain or loss on the bond retirement?
Note: Be sure to show how you arrived at your answer.