Acme Entertainment had $2,000,000 of callable bonds outstanding on December 31, 2017. The ten-year bonds were issued on Jan 1, 2010 and incurred $100,000 in bond issue costs. Acme can call the bonds at 101 anytime after January 1, 2016. The company uses straight-line amortization for costs and bond premium. Acme decides to call the bonds on Jan 2, 2018. Compute the gain or loss on early extinguishment of debt. Show your work

A. Loss of $95,000

B. No gain or loss

C. Gain of $35,000

D. Loss of $10,000