On March 31, 2014, Bundy Corporation retired $10,000,000 of bonds, which have a liability balance on March 31, 2014 of 10,500,000, by paying bondholders $9,850,000. How much was the gain or loss on the retirement of the bonds?

Group of answer choices

$150,000 loss.

$150,000 gain.

$650,000 gain.

$350,000 loss.