Mini Lop, Inc. paid $350,000 to retire a bond with a face value of $300,000. The note was issued with an 8% coupon rate paid semi-annually. The note was four years from maturity and had a carrying amount of $340,000.

What is the net gain or loss on the redemption of the note?

Group of answer choices

a. $50,000 loss

b. $40,000 loss

c. $40,000 gain

d. $10,000 loss

e. The provided answers are incorrect