1. Here is information related to a bond issuance and subsequent early extinguishment:

• On January 2, 2005, Giamartino Inc. issued $5,000,000 of 10% bonds at 97 due December 31, 2014.
• The discount on the bonds is amortized on a straight-line basis over the 10 years.
• Legal and other costs of $36,000 were incurred in connection with the issue. Interest on the bonds is payable annually each December 31 and are amortized on a straight-line basis over the 10-year term of the bonds.
• The bonds are callable at 101 (i.e., at 101% of face amount), and on January 2, 2010, Giamartino called the full $5,000,000 face amount of the bonds and retired them.

Calculate the gain or loss on early extinguishment of debt.