The carrying amount of a Bond Payable is $90,000. The Bond Payable has a face value (i.e., Nominal Value) of $100,000. The Bond Payable has a Market Value of $87,000..

The company decides to repurchase the Bond at its Market Value for Cash. The Gain/Loss on Repurchasing the Bond is:

Select one:

a. Loss of $10,000

b. Gain of $10,000

c. Gain of $20,000

d. Gain of $3,000