On January 1, 20x1, Zevrek Co. issues bonds with face amount of P4,000,000 for P4,100,000. The bonds mature on December 31, 20x4 and pay annual interest of 16%. The bonds can be converted into 10,000 of Zevrek Co.'s ordinary shares with par value of P300 per share. On January 1, 20x1, the bonds, without the conversion feature, were selling at a price that reflects a yield rate of 18%. On January 1, 20x3, all the bonds were retired. Zevrek Co. paid a call premium of P300,000 on the retirement. On retirement date, the bonds, without the conversion feature, were selling at 105. How much is the gain (loss) on the retirement of the bonds?

a. 325,247

b. (325,247)

c. 125,247

d. 0