On January 1, 2020, Sro Company issued ten convertible bonds with a par value of $8,000 per bond in market for $82,000 in total. Each bond is convertible into 800 ordinary shares of $3 per ordinary share par value. The bonds have a four-year life and a stated interest rate of 8% payable annually. The market interest rate for similar non-convertible bonds on January 1, 2020, is 9%.

Assume that the bonds were repurchased on December 31, 2021, for $85,600. The fair value of the liability component is determined to be $81,000 on December 31, 2021. Compute any gain or loss on repurchase, and prepare the journal entry to record the repurchase, assuming that the accrual of interest related to 2021 has been recorded.