On January 1, 2019, McCord Products paid $20,000 (face value) for a 5-year bond with a stated interest rate of 5%. The bonds had a fair value of $16,000 on December 31, 2019, and a fair value of $22,000 on December 31, 2020. McCord sold the bond on December 31, 2020, for fair value. The bond was classified as an available-for-sale security.

What was the gain on sale recognized in income by McCord in the year ended December 31, 2020?

Group of answer choices

A) $3,000

B) $2,000

C) $6,000

D) $8,000