On December $31,20$X$0,$ a Zurich real estate holding company issued CHF$10$ million of $10-$year, $8\%$ debentures. The market interest rate at issuance was $8\%.$ Suppose that on December $31,20$X$1($after all interest payments had been recorded for $20$X$1),$ the company purchased all the debentures for CHF$9$ million. The debentures had been held by a large insurance company throughout their life. $($CHF represents Swiss francs.$)$ Show all amounts in thousands of Swiss francs.

Compute the gain or loss on early extinguishment.

By using the balance sheet equation, present an analysis of the December $31,20x1,$ transaction on the holding company's books.

Show the appropriate journal entry.