on august 1,2012, fresno inc. sold 8%, 5 year bonds with maturity value of $2,000,000 for 1,964,000. interest on the bond is payable semi annually on august 1 andd 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 fresno's bond has incresaed to 102. the company decides to refund the bond by selling a new 6% bond issue to mature in 5 years. fresno begains to reacquire its 8% bonds in the market and is able to purchase $600,000 worth 102. the remainder of the outstanding bonds are acquired by excrising the bond call feature.

instruction

calculate fresno' total gain or loss in reacquiring the 8% the bonds, given the carrying value of the bond on oct 1,2014 was $1,979,600