West, Inc. sold its 8% bonds with a maturity value of $6,000,000 on August 1, 2019 for $5,892,000. At the time of the sale the bonds had 5 years until they reached maturity. Interest on the bonds is payable semiannually on August 1 and February 1. The bonds are callable at 104 at any time after August 1, 2021. By October 1, 2021, the market rate of interest has declined and the market price of West's bonds has risen to a price of 101. The firm decides to refund the bonds by selling a new 6% bond issue that matures in 5 years. On October 1, 2021, West begins to reacquire its 8% bonds in the market and is able to purchase $1,000,000 of its bonds on the open market $1,000,000 at 101. That same day, the remainder of the outstanding bonds is reacquired by exercising the bonds' call feature. Assume that the firm uses the straight-line amortization method to account for bond discounts and premiums.

How much was the total gain or loss experienced by West in reacquiring its 8% bonds? TOTAL GAIN OR LOSS: