Jupiter Inc $~~~~~~~~~~~~\$ 500,000$ Discount on Bonds Payable $~~~~~~~~~~~~~15,400$ What Is the Amount of the Gain or Loss on Accordance

Jupiter Inc.has decided to call one-half of its bonds payable.In accordance with the bond contract,Jupiter Inc.may call and retire the bonds at 102.Immediately before the retirement,the balance sheet for Jupiter Inc.reports: 11% bonds payable $~~~~~~~~~~~~\$ 500,000$
Discount on bonds payable $~~~~~~~~~~~~~15,400$

What is the amount of the gain or loss on retirement?

A) loss of $12,700
B) loss of $7,700
C) gain of $5,000
D) loss of $5,000