Nickel Inc. bought $400,000 of 3-year, 8% bonds as an investment on December 31, 2017 for $432,000. The investment receives interest annually and Nickel uses straight-line amortization. On May 1, 2018,the issuer retired $80,000 of the bonds at 111. As a result of the retirement, Nickel will report a:(Do not round intermediate calculations and round final answer to nearest whole dollar.)

Multiple Choice

• $16,000 gain.
• $3,111 gain.
• $86,667 loss.
• $16,000 loss.