Clothes Horse Corp. (” CHC”) issued $ 500,000 bonds due in 10 years on January 1, year 1 at a premium for $ 567,105. Bond issue costs of $ 25,000 are being amortized over the 10- year life of the bonds under U. S. GAAP. On January 1, year 6, when the carrying value of the bond was $ 539,940, CHC retired the bonds at 102. What amount of gain should CHC record related to the retirement?
a. $ 10,000
b. $ 17,440
c. $ 39,940
d. $ 52,440