9% ponds payable due December 31, 2023 $118,900 The bonds have aface value of $700,000, and were issued on December 31, 2013, at 103, with interest payable on July 1 and December 31 of each year. Cotton uses straight-line amortization to amortize bond premium or discount. On March 1, 2015, Cotton retired $280,000 of these bonds at 98 plus accrued interest. Ignoring income taxes, what should Cotton record as a gain on retirement of these bonds? 3. 56 7,560 [3. $13,020 c. $13,160 [1. $14,000