MSG Corporation issued $108,000 of 3-year, 4% bonds outstanding on December 31, 2020 for $113,000. The bonds pay interest annually and MSG uses straight-line amortization. On May 1, 2021, $10,800 of the bonds were retired at 116. As a result of the retirement, MSG will report: (Do not round intermediate calculations and round final answer to nearest whole dollar.)

Multiple Choice

• a $1,284 loss.

• a $1,228 loss.

• a $2,456 loss.

• a $2,456 gain.