Bengro Corp. made a tender offer in 2018 to its bondholders to redeem their bonds outstanding. A total of $60,000,000 of bonds bearing 6% interest payable annually at December 31 were initially issued in 2014 at 105. As of the redemption date, the unamortized premium on the total bonds payable was $1,800,000.

As a result of increasing market interest rates, Bengro was able to offer redemption of the bonds at 98. Exactly one half of the bonds were eventually extinguished when the bondholders accepted the offer.

Required:

Prepare the journal entry to record the early extinguishment of the bonds payable. Remember, only of the bonds were redeemed.