Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2016. LPC's accountant has projected the following amortization schedule from issuance until maturity:

LPC calls the bonds at 103 immediately after the interest payment on 12/31/2017 and retires them. What gain or loss, if any, would LPC record on this date?
a. $6,000 loss
b. $2,283 loss
c. No gain or loss
d. $3,717 gain

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Date Cash interest Effective interest Decrease in balance Outstanding balance 1/1/2016 $207,020 6/30/2016 $7,000 $6,211 S789 206,230 813 12/31/2016 7,000 6,187 205,417 6/30/2017 204,580 7,000 6,163 837 12/31/2017 7,000 6,137 863 203,717 6/30/2018 888 7,000 6,112 202,829 12/31/2018 915 7,000 6,085 201,913 6/30/2019 943 7,000 6,057 200,971 12/31/2019 7,000 6,029 971 200,000