only $5,000 of the discount. Requires

Redemption of Bonds HARVARD Company issued $550,000 face value bonds at a discount of $12,000. The bonds contain a call provision of 102. HARVARD decides to redeem the bonds due to a significant decline in interest rates. On that date, HARVARD had amortized only $5,000 of the discount. Required: 1. Calculate the gain or loss on the early redemption of the bonds. Enter the amount as positive number. Round your answer to the nearest whole dollar. 2. Calculate the gain or loss on the redemption assuming that the call provision is 99 instead of 102. Enter the amount as positive number. Round your answer to the nearest whole dollar.