On March 31, 2007, Hanson Corporation sold $5,000,000 of its 8%, 10-year bonds for $4,807,500 including accrued interest. The bonds were dated...

1. On March 31, 2007, Hanson Corporation sold $5,000,000 of its 8%, 10-year bonds for $4,807,500 including accrued interest. The bonds were dated January 1, 2007. Interest is paid semiannually on January 1 and July 1. On April 1, 2011, Hanson purchased 1/2 of the bonds on the open market at 99 plus accrued interest and canceled them. Hanson uses the straight-line method for amortization of bond premiums and discounts. (a) What was the amount of the gain or loss on retirement of the bonds?