The answer is C, can someone go through the steps please?

8 year Bonds with a Face Value of $1,000,000 were issued on January 1, 2004 for 96. Interest is paid on the Bonds semiannually on June 30, and December 31 and Discount/Premium is amortized using the straight-line method. The Bonds are redeemed 51/2 years later at 98. If the Amortization of Discount/Premium is recorded up to date, determine the gain or loss on redemption of the bonds. $7, 500 loss $34, 500 loss $7, 500 gain $34, 500 gain