Problem Five

On January $1,2015,$ Aye Corporation issued $$1,000,000,10\%$ bonds, receiving a $$60,000$ premium. On the interest date $5$ years later, after the bond interest was paid and after $40\%$ of the premium had been amortized, the corporation purchased the entire issue on the open market at $98$ and retired the issue.

Required

Prepare the journal entry to record the retirement.