Redemption of Bonds

MCGEE Company issued $500,000 face value bonds at a discount of $9,000. The bonds contain a call provision of 98. MCGEE decides to redeem the bonds due to a significant decline in interest rates. On that date, MCGEE had amortized only $3,300 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. $ ______Gain

2. Calculate the gain or loss on the redemption assuming that the call provision is 101 instead of 98. Enter the amount as positive number. Round your answer to the nearest whole dollar. $_______ Loss