Willard Inc. had outstanding 10%, $1,000,000 15 year bonds. The unamortized balance of the bond discount is $55,000. Willard reacquired half of these bonds at 97 and retired them. How much gain or loss should Willard record on the bonds retirement? Select one: a. Gain of $85,000 b. Gain of $27,500 C. Loss of $12,500 O d. Loss of $15,500