Oriole Company purchased $1110000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2018, with interest payable on July 1 and January 1. The bonds sold for $1160796 at an effective interest rate of 7%. Using the effective interest method, Oriole Company decreased the Available-for-Sale Debt Securities account for the Carlin, Inc. bonds on July 1, 2018 and December 31, 2018 by the amortized premiums of $3348 and $3492, respectively.

At February 1, 2019, Oriole Company sold the Carlin bonds for $1145100. After accruing for interest, the carrying value of the Carlin bonds on February 1, 2019 was $1150500. Assuming Oriole Company has a portfolio of available-for-sale debt investments, what should Oriole Company report as a gain (or loss) on the bonds?

$-5400.

$-15696.

$-10296.

$0.