Butler, Inc. paid $150,000 to retire a note with a face value of $166,000 . The note was issued with an 8% coupon rate paid semiannually. The note was three years from maturity and had a net book value of $136,400 . What is the net gain or loss on the redemption of the note?

Select one:

a. $16,000 loss

b. $13,600 gain

c. $16,000 gain

d. None of these are correct.

e. $13,600 loss