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Freed Corporation has outstanding $800,000 of 8 percent bonds callable at 104. On September 1, immediately after recording the payment of the semiannual interest and

Freed Corporation has outstanding $800,000 of 8 percent bonds callable at 104. On September 1, immediately after recording the payment of the semiannual interest and the amortization of the discount, the unamortized bond discount equaled $21,000. On that date, $480,000 of the bonds was called and retired.

1. How much cash must be paid to retire the bonds? $

2. Is there a gain or loss on retirement? SelectGainLossNo gain or lossItem 2

How much is it? $

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