On January 1, 2019, Hernandez Corporation issued $18,000,000 of 10% ten-year bonds at are callable at the option of Hernandez at 105. Hernandez has recorded amortization of th the straight-line method (which was not materially different from the effective-interest me 31, 2025, when the fair value of the bonds was 96, Hernandez repurchased $4,000,000 of open market at 96. Hernandez has recorded interest and amortization for 2025. Ignoring assuming that the gain is material, Hernandez should report this reacquisition as O a gain of $244,000. O a loss of $244,000. O a gain of $196,000. O a loss of $196,000.

On January 1, 2019. Hernandez Corporation issued $18,000,000 of 10% ten-year bonds at 103 . The bonds are callable at the option of Hernandez at 105 . Hernandez has recorded amortization of the bond premium on the straight-line method (which was not materially different from the effective-interest method). On December 31,2025 , when the fair value of the bonds was 96 . Hernandez repurchased $4,000,000 of the bonds in the open market at 96 . Hernandez has recorded interest and amortization for 2025. Ignoring income taxes and assuming that the gain is material, Hernandez should report this reacquisition as a gain of $244,000. a loss of $244,000. a gain of $196,000. a loss of $196,000