oseph Max, Inc., sold 10-year, 5 percent bonds for $1,000,000 at 98. On the annual interest payment date at the end of the fifth year the bonds were outstanding, 40 percent ($400,000) of the bonds were retired by Max at 102 under an early retirement option that was included in the bond agreement. Determine the gain or loss that Max will incur as a result of retiring the bonds.