A.On February 1 2005 issued 6% bonds with face amount of 40,000,000 for net proceeds of 36,776,000, a price that yields 8%. Interest is payable annually every December 31. The entity elected the fair value option. On December 31, 2005, the bonds are quoted at 97.

Determine the Carrying amount and the interest expense explain after

On February 28, 2004, issued 6% bonds with face amount of 40,000,000 for net proceeds of 36,776,000, a price that yields 8%. Interest is payable annually every December 31. The entity elected the fair value option. On December 31, 2004, the bonds are quoted at 97. On January 30, 2005, the entity retired the bonds at 102. What is the gain or loss on retirement?