Aaron, a holder of a $200,000 Xenon Inc. bond, collected the interest due on June 30, 20X2, and then sold the bond to Dolphin Inc. for $185,000. On that date the bond issuer, Xenon, an 80 percent owner of Dolphin, had a $220,000 carrying amount for this bond. What amount of gain or loss on bond retirement was recorded during the consolidation proces.

		No gain or loss
		$35,000 loss
		$35,000 gain
		$15,000 loss