On December 31, 2020, after making the applicable annual interest payment, Debt Free Company paid $ 28,000,000 in a market transaction to retire one of their outstanding bonds. The bond being retired hadbeen issued on January 1, 2016, with a face value of $ 30,000,000, and had a maturity date of December 31, 2030. The bond had a coupon payment of 10%, and was issued at a time when the market was requiring a12% rate of return for bonds with a similar risk and maturity. In accordance with US GAAP, Debt Free Company had been amortizing the bonds using the effective interest method. Based on the information provided above, how much of a Pre-Tax Gain/Loss did Debt FreeCompany report on the early retirement of their bonds? Present Value Factors are as follows: 10 Year Single Payment @ 10%: 0.3855;, 10 Year Single Payment @ 12%: 0.3220; 15 Year Single Payment @ 10%: 0.2394; 15 Year Single Payment @ 12%:. 0.1827 Present Value Annuity Factors are as follows. 10 Year Annuity @ 10%: 6.1446; 10 Year Annuity @ 12%: 5.6502;, 15 Year Annuity @ 10%: 7.6061; 15 Year Annuity @ 12%: 6.8109 When answering the question, please use the above factors to avoid having your answer marked incorrect due to a "rounding error".

A.Pre-Tax Gain of $ 2,000,000 B.Pre-Tax Loss of $ 1,389,400 C.Pre-Tax Loss of $ 3,935,800 D.None of the above