Excercise 12-5 Calculating gain or loss at early retirement (LO 12-3)

On February 1, 20X1, Davis Corporation issued 12%, $1,000,000 par, 10-year bonds for $1,117,000. Davis reacquired all of these bonds at 102% of par, plus accrued interest, on May 1, 20X3, and retired them. The unamortized bond premium on that date was $78,000.

Required:

Before income taxes, what was Daviss gain or loss on the bond extinguishment?