On January $1,2019,$ Crane Corporation issued $$17730000$ of $10\%$ ten$-$year bonds at $103.$ The bonds are callable at the option of Crane at $105.$ Crane has recorded amortization of the bond premium on the straight$-$line method $($which was not materially different from the effective$-$interest method$).$

On December $31,2025,$ when the fair value of the bonds was $96,$ Crane repurchased $$3940000$ of the bonds in the open market at $96.$ Crane has recorded interest and amortization for $2025.$ Ignoring income taxes and assuming that the gain is material, Crane should report this reacquisition as

a loss of $$240340.$

a loss of $$193060.$

a gain of $$193060.$

a gain of $$240340.$