On January 1, 2013, F Corp. issued 3,200 of its 10%, $1,000 bonds for $3,298,000. These bonds were to mature on January 1, 2023, but were callable at 101 any time after December 31, 2016. Interest was payable semiannually on July 1 and January 1. On July 1, 2018, F called all of the bonds and retired them. The bond premium was amortized on a straight-line basis. Before income taxes, F Corp.'s gain or loss in 2018 on this early extinguishment of debt was:

Multiple Choice

• $32,000 loss.

• $81,000 gain.

• $21,900 gain.

• $12,100 gain.