Nickel Inc. bought $300,000 of 3-year, 6% bonds as an investment on December 31, 2015 for $318,000. Nickel uses straight-line amoritization. On May 1, 2016, $60,000 of the bonds were redeemed at 111. As a result of the retirement, Nickel will report:

A.) $3,400 gain

B.) $3,400 loss

C.) $12,000 gain

D.) $6,000 loss