THA buys back the bonds for $196,000 immediately after the interest payment on 12/31/12 and retires them. What gain or loss, if any, would THA record on this date?

Name: THA buys back the bonds for $196,000 immediately after the interest payment on 12/31/12 and retires them. What gain or loss, if any, would THA record on this date?
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Question

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THA paid only $196,000 to remove a liability with a carrying value of $196,370 on December 31, 2012. The difference is a gain of $370.

THA Buys Back the Bonds for $196,000 Immediately After the Interest