On January 1, Toby Manufacturing issued $2,500,000 par value 8%, 5-year bonds (i.e., there were 2,500 of $1,000 par value bonds in the issue). Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1. The market rate of interest was 14% on the date that Toby issued the bonds.Toby retired the bonds at $1,900,000 with an open market purchase at the end of the first year. Prepare the journal entry to record the derecognition of the obligation.Toby uses the effective interest rate method.