Bowling Green Associates Has Outstanding Bonds Payable, with a Par

Bowling Green Associates has outstanding Bonds Payable, with a par value of $120,000, and carrying value of $116,800.
If Bowling Green purchases the bonds in the open market at a price of 98.0 and retires them, which of the following is true?

A) Bowling Green will recognize a loss of $3,200.
B) Bowling Green will recognize a gain of $3,200.
C) Bowling Green will recognize a gain of $800.
D) Bowling Green will recognize a loss of $800.