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On January 2, 2015, Indigo Corporation issued $2,200,000 of 10% bonds at 99 due December 31, 2024

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On January 2, 2015, Indigo Corporation issued $2,200,000 of 10% bonds at 99 due December 31, 2024. Interest on the bonds is payable annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "interest method.") The bonds are callable kit 102 (ie, at 102% of face amount), and on January 2, 2020, Indigo called $1.320,000 face amount of the bonds and redeemed them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Indigo as a result of retiring the $1,320,000 of bonds in 2020. (Round answer to decimal places, eg. 38,548.) Loss on redemption $ Prepare the journal entry to record the redemption (Round answers to decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Credit January 2, 2020 Bonds Payable Loss on Redemption of Bonds Debit 1320000 Discount on Bonds Payable Cash 1346400