Use the Following Information to Answer Questions

Use the following information to answer Questions
Parker Company owns 90% of the outstanding common stock of Stagger Company.On January 1, 2014, Stagger Company issued $500,000, 12%, ten-year bonds.
On January 1, 2013, Parker Company paid $315,000 for Stagger Company bonds with a par value of $300,000 and a carrying value of $297,600.Both companies use the straight-line method to amortize bond premiums and discounts.Parker Company accounts for the investment using the cost method of accounting.
-The total gain or loss on the constructive retirement of the debt to be reported in the 2013 consolidated income statement is

A) $15,000 loss.
B) $15,000 gain.
C) $17,400 loss.
D) $17,400 gain.
E) $ 2,400 loss.