On February 1, 2015, Pat Weaver Inc. (PWI) issued 7%, $1,500,000 bonds for $1,800,000. PWI retired all of these bonds on January 1, 2016, at 105. Unamortized bond premium on that date was $157,500. How much gain or loss should be recognized on this bond retirement?

$82,500 gain.

$105,000 gain.

$126,000 gain.

$0 gain.

Please list step by step on how to do this problem. Thank you so much