Adams Township issued $25,000,000 face value, 6-year, 5% bonds payable on January 1, 2016. Bond interest is payable semiannually on June 30 and December 31. The market rate of interest on the issue date was 6%. On the issue date, Adams' treasurer prepared the following Effective Interest Amortization table: Payment Date Cash Payment Interest Expense Decrease in Discount Discount Balance Book Value 6/30/16 $625,000 $712,672 $87,672 $1,156,578 $23,843,422 12/31/16 $625,000 $715,303 $90,303 $1,066,275 $23,933,725 6/30/17 $625,000 $718,012 $93,012 $973,264 $24,026,736 12/31/17 $625,000 $720,802 $95,802 $877,462 $24,122,538 6/30/18 $625,000 $723,676 $98,676 $778,785 $24,221,215 12/31/18 $625,000 $726,636 $101,636 $677,149 $24,322,851 6/30/19 $625,000 $729,686 $104,686 $572,463 $24,427,537 12/31/19 $625,000 $732,826 $107,826 $464,637 $24,535,363 6/30/20 $625,000 $736,061 $111,061 $353,576 $24,646,424 12/31/20 $625,000 $739,393 $114,393 $239,184 $24,760,816 6/30/21 $625,000 $742,824 $117,824 $121,359 $24,878,641 12/31/21 $625,000 $746,359 $121,359 $0 $25,000,000 The bonds are callable at a price of 102 and Adams decides to call all of the bonds on January 1, 2021 (i.e., immediately after the December 31, 2020 interest payment). The journal entry to record this early retirement of Adams' bonds will include a: Loss on Early Retirement of Bonds of $500,000 Loss on Early Retirement of Bonds of $260,816 Gain on Early Retirement of Bonds of $500,000 Loss on Early Retirement of Bonds of $739,184 Gain on Early Retirement of Bonds of $260,816