A corporation issued 8% bonds with a par value of $1,240,000, receiving a $68,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is:

Multiple Choice

• $12,400 gain.

• $53,200 gain.

• $53,200 loss.

• $0.

• $12,400 loss.