As reported to the FAA. Reports are unverified, and codes are left as the FAA publishes them.
What was found
DURING INITIAL CLIMB, TRANSPONDER FAIL LIGHT ILLUMINATED WITH NR 1 SET SELECTED. SELECTED NR 2 TO NO AVAIL. CIRCUIT BREAKER CHECKED OK. DIVERTED. C/A: REPLACED MODE S TRANSPONDER IAW MM. TEST CARRIED OUT. OPS CHECK SATISFACTORY. ALSO ATC TRANSPONDER NR 2 TRANSFERRED TO DMI.