Riley Co. has outstanding $40 million face amount of 15% bonds that were issued on January 1, 1998, for $39,000,000. The 20-year bonds mature on December 31, 2017, and are callable at 102 (that is, they can be paid off at any time by paying bondholders 102% of the face amount). Assume that the bonds are called on December 31, 2010. Use the horzontal model( or write the jornal entry ) to show the effect of the retirement of the bonds. (Hint: Calculate the amount paid to bondholders; then determine how much of the bond discount would have been amortized prior to calling the bonds; and then calculate the gain or loss on retirement.)