1. O'Sullivan Plastics Co. (OSPC) issued callable bonds on January 1, 2021. OSPC's accountant has projected the following amortization schedule from issuance until maturity:

   Date	Cash interest			Effective interest			Decrease in balance			Outstanding balance
   1/1/2021										$	207,020
   6/30/2021	$	7,000		$	6,211		$	789			206,230
   12/31/2021		7,000			6,187			813			205,417
   6/30/2022		7,000			6,163			837			204,580
   12/31/2022		7,000			6,137			863			203,717
   6/30/2023		7,000			6,112			888			202,829
   12/31/2023		7,000			6,085			915			201,913
   6/30/2024		7,000			6,057			943			200,971
   12/31/2024		7,000			6,029			971			200,000

   OSPC calls the bonds at 103 immediately after the interest payment on 12/31/2022 and retires them. What gain or loss, if any, would OSPC record on this date?

   		No gain or loss
   		$3,717 gain
   		$6,000 loss
   		$2,283 loss