On January 1, 2009, Gless Textiles issued $12 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of Glesss $1 par common stock. Century Services purchased 10% of the issue as an investment. On July 1, 2014, when Glesss common stock had a market price of $33 per share, Century converted the bonds it held. How much is the gain or loss that Gless should recognize on this conversion under the book value method?

A. $0

B. $5,400

C. $54,000

D. None of the above answers is correct.