On January 1, 2014, ABC LLC, issued bonds to finance the purchase of a new machine. The face value of the bonds is $10,000,000 with a stated interest rate of 7%. The market rate at issuance of the bond is 6%. The term of the bonds is 4 years. Interest is paid annually on December 31. 1.1 Calculate the amount of interest expense that recognized in the second year, 2014: 1.2 At the end of the second year, due to favorable changes in interest rates, ABC LLC settles the bonds for the face value, paying $10 million to retire the bonds. Will a gain or loss be recognized upon settlement? 1.3 Continuing from the above problem, what will be the amount of the gain or loss? Enter a positive number for a gain, a negative number for a loss, 0 if there is no gain or loss recognized