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Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2016. LPC's accountant has projected the following amortization schedule from issuance until maturity: Date Cash

Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2016. LPC's accountant has projected the following amortization schedule from issuance until maturity:


Date
Cash interest Effective interest Decrease in balance Outstanding balance
1/1/2016 $207,020
6/30/2016 $7,000 $6,211 $789 206,230
12/31/2016 7,000 6,187 813 205,417
6/30/2017 7,000 6,163 837 204,580
12/31/2017 7,000 6,137 863 203,717
6/30/2018 7,000 6,112 888 202,829
12/31/2018 7,000 6,085 915 201,913
6/30/2019 7,000 6,057 943 200,971
12/31/2019 7,000 6,029 971 200,000

LPC calls the bonds at 103 immediately after the interest payment on 12/31/2017 and retires them. What gain or loss, if any, would LPC record on this date?
$6,000 loss
$2,283 loss
No gain or loss
$3,717 gain

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