On January 1, 2011, Fox Corp. issued 1,000 of its 8%, $1,000 bonds for $1,020,000. These bonds were to mature on January 1, 2021, but were callable at 101 any time after December 31, 2013. Interest was payable semiannually on July 1 and January 1. On December 31, 2016, Fox called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes, Foxs gain or loss in 2016 on this early extinguishment of debt was

a. $2,000 loss b. $8,000 loss c. $4,000 gain d. $6,000 gain