Tamarisk Eateries reported the following account balances in the December 31, 2017, financial report:

Bonds payable		$500,000
Premium on bonds payable		12,500

The bonds have a stated annual interest rate of 10 percent and an effective interest rate of 8 percent. Interest is paid on June 30 and December 31.

Compute the gain or loss recorded on January 1, 2018, if the bonds are called at 105.

Loss or Gain on bond redemption $_________