Chee purchases Tan, Inc. bonds for $108,000 on January 2, 2015. The face value of the bonds is $100,000, the maturity date is December 31, 2019, and the annual interest rate is 5%. Chee will amortize the premium only if he is required to do so. Chee sells the bonds on July 1, 2017, for $106,000. a. Determine the interest income Chee should report for 2015. b. Calculate Chee's recognized gain or loss on the sale of the bonds in 2017.