On January 1, 2021, Western Industries had outstanding $1,000,000 of 8% bonds with a book (carrying) value of $965,000. The indenture specified a call price of $980,000. The bonds were issued previously at a price to yield 10% and interest payable semi-annually on July 1 and January 1. Western called the bonds (retired them) on July 1, 2021. What is the amount of the loss on early extinguishment?

Multiple Choice

$6,750.

$8,250.

$6,462.

$0.