On January 1, 2016, F Corp. issued 3,800 of its 10%, $1,000 bonds for $3,916,000. These bonds were to mature on January 1, 2026, but were callable at 101 any time after December 31, 2019. Interest was payable semiannually on July 1 and January 1. On July 1, 2021, 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 2021 on this early extinguishment of debt was:4

• $14,200 gain.

• $38,000 loss.

• $25,800 gain.

• $96,000 gain.