On January 1, 2022, Gorski Corp. purchased $1,000,000,10% bonds for $1,040,000.These bonds were to mature on January 1, 2032, but were redeemable at 101 any time after December 31, 2025.Interest was payable semiannually on July 1 and January 1.On July 1, 2026, Gorski sold all of the bonds.Bond premium was amortized on a straight-line basis. Gorski's gain or loss in 2026 was:

Select one:

a.$30,000 loss

b.$12,000 loss

c.$10,000 gain

d.$8,000 loss

e.$12,000 gain