Question - On its December 31, 2004 balance sheet, Knorr Corp. reported bonds payable of $3,700,000 and related unamortized bond issue costs of $182,000. The bonds had been issued at par. On January 1, 2005, Knorr retired $1,800,000 of the outstanding bonds at par plus a call premium of $42,000. What amount should Knorr report in its 2005 income statement as loss on extinguishment of bonds?