On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 10% bonds with a book value of $971,000. The indenture specified a call price of $987,500. The bonds were issued previously at a price to yield 12% and interest payable semi-annually on July 1 and January 1. Tiny Tim called the bonds (retired them) on July 1, 2021. What is the amount of the loss on early extinguishment?

A) $0. B) $8,240. C) $7,888. D) $8,260