A company has bonds outstanding with a par value of $100,000. The unamortized premium on these bonds is $2,700. If the company retired these bonds at a call price of $99,000, the gain or loss on this retirement is:

Multiple Choice

• $1,000 gain.

• $1,000 loss.

• $2,700 loss.

• $2,700 gain.

• $3,700 gain.