On January 1, 2012, Concord Corporation issued $18000000 of 9% ten-year bonds at 102. The bonds are callable at the option of Concord at 104. Concord 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, 2018, when the fair value of the bonds was 95, Concord repurchased $3980000 of the bonds in the open market at 95. Concord has recorded interest and amortization for 2018. Ignoring income taxes and assuming that the gain is material, Concord should report this reacquisition as Entry field with incorrect answer

a loss of $243000.

a gain of $243000.

a loss of $291000.

a gain of $291000.