Nickel Inc. bought $600,000 of 3-year, 8% bonds as an investment on December 31, 2015 for $648,000. Nickel uses straight-line amortization. On May 1, 2016, $120,000 of the bonds were redeemed at 117. As a result of the retirement, Nickel will report

(Do not round intermediate calculations and round final answer to nearest whole dollar.):

$24,000 loss.

$11,867 loss.

$24,000 gain.

$11,867 gain.

At the beginning of 2016, Angel Corporation began offering a 2-year warranty on its products. The warranty program was expected to cost Angel 8% of net sales. Net sales made under warranty in 2016 were $218 million. Fifteen percent of the units sold were returned in 2016 and repaired or replaced at a cost of $4.60 million. The amount of warranty expense on Angel's 2016 income statement is:

$17.44 million.

$4.60 million.

$32.70 million.

$20.84 million.