13. On January 1, 2008, Hernandez Corporation issued $9,000,000 of 10% ten-year bonds at 103. Hernandez has recorded amortization using the straight-line method On December 31, 2014 (7 years after issue), when the fair value of the bonds was 96, Hernandez repurchased $2,000,000 of the bonds in the open market at 96. Hernandez has recorded interest and amortization for 2014. Hernandez should report this reacquisition (buyback)as A) a loss of $98,000 B) a gain of $98,000. C) a loss of $122,000. D) a gain of $147,000. E) None of the above