The Maruska Corporation has outstanding $800,000 of 8 percent bonds callable at 104. On September 1, immediately after recording the payment of the semiannual interest and the amortization of the discount, the unamortized bond discount equaled $21,000. On that date, $480,000 of the bonds was called and retired.

1. How much cash must be paid to retire the bonds?

2. Is there a gain or loss on retirement? If so, how much is it?