Calculating Gains and Losses on Early Retirement of Debt The data below pertain to bonds outstanding at 2016 year end. For each of the following outstanding bonds, determine whether the company would record a gain or a loss if it decided to retire the bonds at the end of fiscal 2016.

Face Value Premium (Discount) Fair Value Firm 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . $300,000 $45,885 $402,558 Firm 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 42,550 712,558 Firm 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 (16,995) 504,770 Firm 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 (2,250) 385,669