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										$	112,094
12/31/2021	$	11,880		$	11,209		$	671			111,423
12/31/2022		11,880			11,142			738			110,686
12/31/2023		11,880			11,069			811			109,874
12/31/2024		11,880			10,987			893			108,982
12/31/2025		11,880			10,898			982			108,000

X2 buys back the bonds for $111,160 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

• $1,362 loss.

• $474 loss.

• No gain or Loss.

• $3,160 gain.