5 Dividends payable on common stock $ 50,000 Notes payable—Girard State Bank 470,000 Currently maturing portion of serial bonds 200,000Total current liabilities $ 720,000 Long-term debt: Note payable—Third National Bank, refinanced in January, 2005—Note 1 350,000 Serial bonds not maturing currently 800,000Total long-term debt 1,150,000Total liabilities $1,870,000Note 1: On January 26, 2005, the corporation issued 40,000 shares of common stock and received proceeds totaling $400,000, of which $350,000 was used to liquidate a note payable that matured on January 27, 2005. Accordingly, such note payable has been classified as long-term debt at December 31, 2004. Question 8:On June 30, 2004, Parks Co. had outstanding 8%, $2,000,000 face amount, 15-year bonds maturing on June 30, 2014. Interest is payable on June 30 and December 31. The unamortized balances in the bond discount and deferred bond issue costs accounts on June 30, 2004 were $70,000 and $20,000, respectively. On June 30, 2004, Parks acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt?