Question - On January 1, 2007, Hanson Corporation sold $5,000,000 of its 8%, 10-year bonds for $4,707,500. Interest is paid semiannually on January 1 and July 1. On January 1, 2012, Hanson purchased 1/2 of the bonds on the open market at 99 and retired them. Hanson uses the straight-line method for amortization of bond premiums and discounts. What was the amount of the gain or loss on retirement of the bonds? Prepare the journal entry needed at January 1, 2012 to record retirement of the bonds. Assume that interest and premium or discount amortization have already been recorded through this date. Prepare the journal entry needed at July 1, 2012 to record interest and premium or discount amortization.