Washington Inc. issued $1,410,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $16,400 of the bond discount. On January 1, 2017, Washington Inc. retired the bonds at 102 (after making the interest payment on that date). What is the gain or loss that Washington Inc. would report for the retirement of this bond?

Select one:

a. $40,000 loss

b. $40,000 gain

c. $28,200 loss

d. $28,200 gain

e. None of these are correct.