Rickman Company purchased $1,200,000 of 8%, 5-year bonds from Carling, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $1,249,896 at an effective interest rate of 7%. Using the effective interest method, Rickman Company decreased the Available-for-Sale Debt Securities account for the Carling, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $4,248 and $4,392, respectively. At February 1, 2022, Rickman Company sold the Carling bonds for $1,236,000. After accruing for interest, the carrying value of the Carling bonds on February 1, 2022 was $1,240,500. Assuming Rickman Company has a portfolio of available-for-sale debt investments, what should Rickman Company report as a gain (or loss) on the bonds

a.

$0.

b.

($35,244).

c.

($4,500).

d.

($26,244).