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Exercise 14-12 On January 2, 2012, Headland Corporation issued $2,150,000 of 10% bonds at 98 due December 31, 2021. Interest on the bonds is payable

Exercise 14-12 On January 2, 2012, Headland Corporation issued $2,150,000 of 10% bonds at 98 due December 31, 2021.

Interest on the bonds is payable annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable interest method.) The bonds are callable at 101 (i.e., at 101% of face amount), and on January 2, 2017, Headland called $1,290,000 face amount of the bonds and redeemed them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Headland as a result of retiring the $1,290,000 of bonds in 2017. (Round answer to 0 decimal places, e.g. 38,548.) Loss on redemption

Loss on redemption $

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