Zambrano Corp. decided to go into the market to repurchase bonds before their due date. The following are the balances of the accounts on the date of the retirement:

Bonds Payable	$5,000,000
Discount on Bonds Payable	$78,000

If Zambrano pays $4,886,000 to retire the bond, what is the gain or loss on the early extinguishment of the debt?

A. $78,000 loss

B. $96,000 loss

C. $36,000 gain

D. No gain or loss is recognized

Please explain