Sheridan Company purchased $1250000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $1299396 at an effective interest rate of 7%. Using the effective interest method, Sheridan Company decreased the Available-for-Sale Debt Securities account for the Carlin, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $4748 and $4892, respectively. At February 1, 2022, Sheridan Company sold the Carlin bonds for $1286500. After accruing for interest, the carrying value of the Carlin bonds on February 1, 2022 was $1290500. Assuming Sheridan Company has a portfolio of available-for-sale debt investments, what should Sheridan Company report as a gain (or loss) on the bonds?

A

$-4000

B

$-12896

C

$-8896

D

$0