Alan Company had bonds outstanding with a maturity value of $1,500,000. On June 30, 2015, when these bonds had an unamortized premium of $21,000, they were called in at 103. To pay for these bonds, Alan had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 20 years. The new bonds were issued at 98 (face value $1,800,000). Issue costs related to the new bonds were $26,000.

Instructions
Ignoring interest, compute the gain or loss and record this refunding transaction.
(AICPA adapted)