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The carrying value of $60,000 face value bonds at the end of the third year is $61,116. The stated rate is 6%; the effective rate

The carrying value of $60,000 face value bonds at the end of the third year is $61,116. The stated rate is 6%; the effective rate is 5%. On September 1, Year 4, the bonds are purchased on the market for $60,200 plus accrued interest. What is the gain or loss on retirement? Interest is paid annually.

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