RollsRace, Inc. has recently issued 11% bonds, dated January 1. The face value amount of these bonds is $400,000 and dated January 1, 2024, for 20 years. These bonds sold for $369,908 with a maturity date of 2043. When looking at the market for similar bonds (risk and maturity-wise) the market rate was 12%. Interest is paid semiannually on June 30 and December 31. RollRace determines interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2024, the fair market value of the bonds was $365,000 RollsRace statement of comprehensive income for the year will include:

Multiple Choice

A gain from change in the fair value of debt of $5,309.

A loss from change in the fair value of debt of $5,309.

A loss from change in the fair value of debt of $5,102.

A gain from change in the fair value of debt of $5,102.