Fergus Fabricators, a manufacturing company, paid $20,400,000 to retire $24,000,000 in 7% notes due in 5 years. The book value of the notes was $19,200,000 at the date of retirement.
How much is the net gain or loss on the redemption of these notes? Prepare the journal entry to record the transaction.

Question

Fergus Fabricators, a manufacturing company, paid $20,400,000 to retire $24,000,000 in 7% notes due in 5 years. The book value of the notes was $19,200,000 at the date of retirement. 
How much is the net gain or loss on the redemption of these notes? Prepare the journal entry to record the transaction.

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The Answer of Fergus Fabricators, a manufacturing company, paid $20,400,000 to retire $24,000,000 in 7% notes due in 5 years. The book value of the notes was $19,200,000 at the date of retirement. 
How much is the net gain or loss on the redemption of these notes? Prepare the journal entry to record the transaction.

Fergus Fabricators, a Manufacturing Company, Paid $20,400,000 to Retire $24,000,000