On Aug 1 2013, fresco inc sold 8% of 5 year bond with a maturity value of 2,000,000 for 1,946,00o interest on bond is payable semi annually on Aug. 1 to feb 1. The bonds are callable at 104 at any time after august 1 2014. By oct 1, 2014 the market rate of interest has declined and the market price of fresco bond has increased to 102. The company decided to retire the bond. Fresco begins to acquire the 2,000,000 8 % bond in the market ana is able to purchase 600,000 at 102. However the reminder of outstanding bonds are acquired by exercising the bond call future at 104.

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Calculate freco total gain or loss acquiring 8% bond assume the company uses straight line amortization. Show full calculation.