On January 1, 2015, Sheffield Corp. issued $18270000 of 8% ten-year bonds at 102. The bonds are callable at the option of Sheffield at 104. Sheffield 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, 2021, when the fair value of the bonds was 96, Sheffield repurchased $4060000 of the bonds in the open market at 96. Sheffield has recorded interest and amortization for 2021. Ignoring income taxes and assuming that the gain is material, Sheffield should report this reacquisition as

a gain of $234760.

a loss of $234760.

a loss of $186760.

a gain of $186760.