On Its December 31, 2007 Balance Sheet, Lane Corp

On its December 31, 2007 balance sheet, Lane Corp. reported bonds payable of $6,000,000 and related unamortized bond issue costs of $320,000. The bonds had been issued at par. On January 2, 2008, Lane retired $3,000,000 of the outstanding bonds at par plus a call premium of $70,000. What amount should Lane report in its 2008 income statement as loss on extinguishment of debt (ignore taxes) ?

A) $0
B) $70,000
C) $160,000
D) $230,000