On July 1, 2014 Individual A acquires in the open market a bond of Corporation X having stated redemption price of $10,000 and maturity date of December 31, 2016 for $9,000. On December 31, 2015, when the bond has accrued market discount of $600, A sell the bond for $8,500. How much capital gain/(loss) does A recognize upon the sale of the bond? Assume the bond is capital asset in As hands.

A. $0 B. ($500)

C. ($1,000)

D. $500