Response to the following problem:
On January 1, 20X1, Skippy Hospital issued 2,000 of its 10 percent, $1,000 bonds for $2,080,000. These bonds mature in ten years, but were callable at 101 percent any time after December 31, 20X5. The interest is payable semiannually on July 1 and January 1. On July 1, 20X6, the hospital called all of the bonds and retired them.
Required: What was the gain (loss) on this early extinguishment of debt?