Nickel Inc. bought $400,000 of 3-year, 9% bonds as an investment on December 31, 2017 for $436,000. The investment receives interest annually and Nickel uses straight-line amortization. On May 1, 2018,the issuer retired $80,000 of the bonds at 113. As a result of the retirement, Nickel will report a:(Do not round intermediate calculations and round final answer to nearest whole dollar.)

• $4,000 gain.
• $88,000 loss.
• $16,000 gain.
• $20,000 loss.