Lincolnshire Associates has outstanding Bonds Payable, with a par value of $120,000, and carrying value of $116,700. If Lincolnshire purchases the bonds in the open market at a price of 97.0 and retires them, which of the following is true?

a. Lincolnshire will recognize a gain of $300

B. Lincolnshire will recognize a loss of $300

C. Lincolnshire will recognize a loss of $3,300

D. Lincolnshire will recognize a gain of $3,300