Martinez Company issued its 9%,25-year mortgage bonds in the principal amount of $2,800,000 on January 2,2006 , at a discount of $154,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-line basis. The indenture securing the issue provided that the bonds could be called for redemption in total but not in part at any time before maturity at 104% of the principal amount, but it did not provide for any sinking fund. On December 18,2020, the company issued its 11%,20-year debenture bonds in the principal amount of $4,140,000 at 103 , and the proceeds were used to redeem the 9%,25-year mortgage bonds on January 2,2021 . The indenture securing the new issue did not provide for any sinking fund or for redemption before maturity. (a) Prepare journal entries to record the issuance of (1) the 11% bonds and (2) the redemption of the 9% bonds. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (b) Indicate the income statement treatment of the gain or loss from redemption