The December 31, 2004, balance sheet of Dodge Corporation includes the following items:
9% bonds payable due December 31, 2013 $1,500,000
Unamortized premium on bonds payable 40,500
The bonds were issued on December 31, 2003, at 103, with interest payable on July 1 and December 31 of each year. Dodge uses straight-line amortization.
On March 1, 2005, Dodge retired $560,000 of these bonds at 98 plus accrued interest. What amount should Dodge record as a gain on retirement of these bonds.