Six years ago, a company issued $500,000 of 6%, eight-year bonds at a price of 95. The

Question:

Six years ago, a company issued $500,000 of 6%, eight-year bonds at a price of 95. The current carrying value is $493,750. The company decides to retire 50% of these bonds by buying them on the open market at a price of 10272. What is the amount of gain or loss on the retirement of these bonds?

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