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Weber Company issued five-year, 10% bonds on January 2, 2014, for 105. Par value is $860,000. Interest is paid semiannually on June 30 and December

Weber Company issued five-year, 10% bonds on January 2, 2014, for 105. Par value is $860,000. Interest is paid semiannually on June 30 and December 31. Weber Company is a 90%-owned subsidiary of Fairfield Company. On December 31, 2014, Fairfield Company purchased $516,000 of Weber Companys par value bonds at 90 after the semiannual interest payment had been made. Weber Company declared dividends of $62,000 in 2014 and $72,000 in 2015. Both companies use the straight-line method to amortize bond discount and premium.

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(a)

Compute the total gain or loss on the constructive retirement of the debt.
Total constructiveimage text in transcribed (Loss or Gain? $

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