X Company had bonds outstanding with a maturity value of $500,000. On April 30^th, 2020 when these

Bonds had an un amortized discount of $10,000 they were called at 104. To pay for these bonds X has is

Issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of

10 years. The new bonds were issued at 103 (face value $500,000). Issue costs related to the new bonds

were $3,000 . All issue costs were capitalized. X prepares financial statements in accordance with IFRS.

Required: Ignoring interest calculate the gain or loss and record all journal entries relating to this

refunding