On January 1, 2013, Shay issues $260,000 of 8%, 20-year bonds at a price of 96.75. Six years later, on January 1, 2019, Shay retires 20% of these bonds by buying them on the open market at 105.25. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount.

1) How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2013, through December 31, 2018?

2) What is the carrying (book) value of the bonds and the carrying value of the 20% soon-to-be-retired bonds as of the close of business on December 31, 2018?

3) What is the amount of the recorded gain or loss from retiring the bonds?