At December 31, 2014 the following balances existed on the books of Foxworth Corporation:

	Bonds Payable		$4,000,000
	Discount on Bonds Payable		320,000
	Interest Payable		100,000
	Unamortized Bond Issue Costs		240,000

If the bonds are retired on January 1, 2015, at 102, what will Foxworth report as a loss on redemption?

$540,000

$400,000

$740,000

$640,000