On February 1, 20X1, Davis Corporation issued 12%, $1,000,000 par, 10-year bonds for $1,117,000. Davis reacquired all of these bonds at 102% of par, plus accrued interest, on May 1, 20X3, and retired them. The unamortized bond premium on that date was $78,000. Required: Before income taxes, what was Davis's gain or loss on the bond extinguishment? on extinguishment of debt