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Joseph Max, Inc., sold 10-year, 5 percent bonds for $1,000,000 at 98 . On the interest payment date at the end of the fifth year

image text in transcribed Joseph Max, Inc., sold 10-year, 5 percent bonds for $1,000,000 at 98 . On the interest payment date at the end of the fifth year the bonds were outstanding, 40 percent ($400,000) of the bonds were retired by Max at 102 under an early retirement option that was included in the bond agreement. Determine the gain or loss that Max will incur as a result of retiring the bonds

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