Exhibit 14-13 on January 1, 2010, Marty Co

Exhibit 14-13 On January 1, 2010, Marty Co.issued $80, 000 of serial bonds that pay 9% interest annually.Each December 31, $16, 000 of the bonds comes due.The bonds were issued for $84, 800.
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Refer to Exhibit 14-13.On January 1, 2011, Marty Co.redeemed at 98 the issue coming due on December 31, 2011.What amount of gain or loss should be recorded on this early bond redemption?

A) $ 640 loss
B) $ 960 gain
C) $ 640 gain
D) $1, 280 gain