A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,800. The company calls these bonds at a price of $98,000 the gain or loss on retirement is:

Multiple Choice

• $2,000 gain.

• $2,800 gain.

• $2,000 loss.

• $0 gain or loss.

• $2,800 loss.