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										$	105,197
12/31/2021	$	7,575		$	6,838		$	737			104,460
12/31/2022		7,575			6,790			785			103,675
12/31/2023		7,575			6,739			836			102,839
12/31/2024		7,575			6,685			890			101,948
12/31/2025		7,575			6,627			948			101,000

X2 buys back the bonds for $104,020 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

• $3,020 gain.

• $1,222 loss.

• $345 loss.

• No gain or Loss.