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  3. the long-term liability section of northwest corpo

The long-term liability section of Northwest Corporation's balance sheet as of December 31, 2020, included...

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Accounting

The long-term liability section of Northwest Corporation's balance sheet as of December 31, 2020, included 4% bonds having a face amount of $500,000 and a remaining discount of $90,000. Disclosure notes indicate the bonds were issued to yield 7%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2021, Northwest retired the bonds at 101 before their scheduled maturity. What is the amount of gain (loss) on early extinguishment of bonds?

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