On January 2,2019, Silver Company invested in a 4-year 10% bond with a face value of $3,000,000 in which interest is to be paid every December 31. The bonds have an effective interest rate of 8% and was acquired for $3,198,650. Silver Company classified the bonds as investment at amortized cost. On December 31, 2021, Silver Company sold the bonds at the prevailing rate of 12% and incurred total transaction cost of $45,000.

What amount of gain or loss should Silver Company recognize on the sale of the security?

A. $250,477

B. $205,447

C. $154,030

D. $109,030