Exalt Companys 10 year, 8% 10,000,000 face value of bonds have a carrying value of 9,672,300 on December 31, 2020. The bonds pay interest semiannually at 8% on June 30 and December 31. On January 1, 2021, the bonds are called at 108. What loss or gain would be reported for the called bonds on the companys 2021 income statement?

108,000 loss.

446,084 gain

1,127,700 Loss

1,127,700 gain