Prairie Manufacturing Ltd. issued $600,000 of 10-year bonds…
Prairie Manufacturing Ltd. issued $600,000 of 10-year bonds on January 1, 2022, at 104. The company uses straight-line amortization for bond premiums. On January 1, 2025, immediately after recording all required interest and premium amortization for 2024, management decides to retire the bonds by repurchasing them at 101. The controller is preparing the journal entry to record the retirement and must determine whether a gain or loss should be recognized. What amount should Prairie Manufacturing report?