During 2010, Hauke Co. purchased 3,000, $1,000, 9% bonds. The carrying value of the

bonds at December 31, 2012 was $2,940,000. The bonds mature on March 1, 2017, and

pay interest on March 1 and September 1. Hauke sells 1,500 bonds on September 1,

2014, for $1,482,000, after the interest has been received. Hauke uses straight-line

amortization. The gain on the sale is

a. $0.

b. $7,200.

c. $12,000.

d. $16,800.