On January 1, 2013, Pale Company Has $700,000 of 6

On January 1, 2013, Pale Company has $700,000 of 6%, 10-year bonds with an unamortized discount of $28,000.Slugg Company, an 80% subsidiary, purchased $350,000 of these bonds at 102.The gain or (loss) on the retirement of Pale's bonds is:

A) $14,000 loss.
B) $14,000 gain.
C) $21,000 loss.
D) $21,000 gain.