Sportz Bykes, Inc.,, approached its bankers, the United Bank of Canada to seek for accommodation on a debt SBI owed. The said debt consisted of a 10%, 4-year note payable, issued at par and due July 1, 2022 for an amount of $380,000. All interest due on the debt was already settled by SBI. The two entities agreed to the following revised terms presented by SBI:

The amended terms would become effective July 1, 2022;

the principal payable was reduced to $300,000 and would be due July 1, 2024;

the annual interest payments are to be reduced to 6% of the revised principal for the years, 2022-23 and 2023-24; and

the market rate on July 1, 2022 was determined to be 9% .

For this Question, assume that the renegotiated terms resulted in a settlement. What amounts would SBI and UBC record as Loss or Gain in their respective books of accounts on July 1, 2022? [SBI: $ Loss or Gain; UBC: $Loss or Gain]

a.SBI: NO LOSS or NO GAIN, $0; UBC: NO LOSS or NO GAIN, $0

b.SBI: GAIN, $100,798; UBC: LOSS, $100,798

c.SBI: GAIN, $95,832; UBC: LOSS, $100,825

d.SBI: GAIN, $80,000; UBC: LOSS, $80,000

e.None of the above.