ABC Company issued callable bonds on January 1, 2021. ABC Company's accountant has projected the following amortization schedule from issuance until maturity:

Date	Cash Paid			Interest Expense			Increase in Carrying Value			Carrying Value
01/01/2021										$	275,280
06/30/2021	$	11,600		$	13,764		$	2,164			277,444
12/31/2021		11,600			13,872			2,272			279,716
06/30/2022		11,600			13,986			2,386			282,102
12/31/2022		11,600			14,105			2,505			284,607
06/30/2023		11,600			14,230			2,630			287,237
12/31/2023		11,600			14,363			2,763			290,000

ABC Company buys back the bonds for $278,006 immediately after the interest payment on 12/31/2021 and retires them. What gain or loss, if any, would ABC Company record on this date?

Multiple Choice

• $2,726 loss.

• No gain or loss.

• $1,710 gain.

• $11,994 gain.