Blossom Company received proceeds of $355500 on 10-year, 6% bonds issued on January 1, 2019. The bonds had a face value of $340000, pay interest annually on December 31, and have a call price of 102. Blossom uses the straight-line method of amortization. Blossom Company decided to call the bonds on January 1, 2021. What amount of gain or loss would Blossom report on their 2021 income statement?

$12400 loss

$5600 gain

$12400 gain

$5600 loss