X2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity:

Date	Cash Paid			Interest Expense			Decrease in Carrying Value			Carrying Value
01/01/2021										$	120,693
12/31/2021	$	9,860		$	9,052		$	808			119,885
12/31/2022		9,860			8,991			869			119,016
12/31/2023		9,860			8,926			934			118,083
12/31/2024		9,860			8,856			1,004			117,079
12/31/2025		9,860			8,781			1,079			116,000

X2 buys back the bonds for $119,660 immediately after the interest payment on 12/31/2022 and retires them. What gain or loss, if any, would X2 record on this date?

Multiple Choice

• No gain or Loss.

• $3,660 gain.

• $1,522 loss.

• $644 loss.