On 1/1/Year 1, Flint Co. (a U.S. GAAP) issues an annual-pay, 10-year, $750,000, 4.25% coupon bond when market rates are 5.00%. The bond's issuance price is $706,565. One year later, Flint redeems the bond at 94.

1. Calculate the unamortized discount at the time the bond is redeemed.

2. Determine whethere there is a gain or loss and calculate the amount.

3. Provide the journal entry for the bond extinguishment.