Buffalo Corporation repurchases its own bonds in the open market by paying $6.25 million for bonds with a face value of $8.0 million and a carrying amount of $7.5 million. What will be the effect of this transaction on the company's financial statements?

	a.	The transaction will have no effect on the company's income statement.
	b.	The company will report other comprehensive income of $1,750,000.
	c.	The company will report a gain of $1,750,000 on the income statement.
	d.	The company will report a gain of $1,250,000 on the income statement.
	e.	The company will report other comprehensive income of $1,250,000.