On July 1, 2014, Tilapia Corp

On July 1, 2014, Tilapia Corp.had outstanding 8%, $1,000,000, 15-year bonds maturing on June 30, 2024.Interest is payable semi-annually on June 30 and December 31.Assume all appropriate entries had been prepared and posted at June 30, 2014.The carrying value of the bond at June 30, 2014 was $965,000.At this time, Tilapia purchased all the bonds at 94 and retired them.What is the gain or loss on this early extinguishment of debt?

A) $60,000 gain
B) $35,000 loss
C) $25,000 gain
D) $25,000 loss