X Corp issues a bond on March 1, 2014 with a maturity date of February 28, 2024. The issue price and the redemption amount is 100,000. The bonds have a 5% coupon. On March 1, 2019, C purchases the bond with a redemption amount of $10,000 for $9,500. C sells the bond on March 2, 2021. How much gain does C recognize on the sale of the bond, and what is its nature if C sells the bond for

a.$9,550

b.$9,800