On January 1, 2006, Gorski Corp. purchased $1,000,000, 10% bonds for $1,040,000. These bonds were to mature on January 1, 2016, but were redeemable at 101 any time after December 31, 2009. Interest was payable semiannually on July 1 and January 1. On January 1, 2011, Gorski sold all of the bonds. Bond premium was amortized on a straight-line basis; Gorski properly amortized $20,000 of premium through January 1, 2011. Before income taxes, Gorski's gain or loss in 2011 was:

Select one:

Select one:

a. $30,000 loss

b. $12,000 loss

c. $10,000 loss

d. $8,000 loss

e. $20,000 loss