The December 31, 2016, balance sheet of James, LLP included 12% bonds with a face amount of $100 million. The bonds were issued in 2006 and had a remaining discount of $3,400,000 at December 31, 2016. On January 1, 2017, James called the bonds at a price of 102. Prepare the journal entry by Sydney to record the retirement of the bonds on January 1, 2017.