Problem
Lamb Corp. decided to go into the market to repurchase bonds before their due date. The following are the balances of the accounts on the date of the retirement:
Bonds Payable $5,000,000
Bond Discount $30,000
Unamortized Bond Issue Cost $45,000
Cash Paid for Bonds $4,900,000
What is the gain or loss on the early extinguishment of the bonds?