In open market transactions, Gold Corp. simultaneously sold its long-term investment in Iron Corp. bonds and purchased its own outstanding bonds. The broker remitted the net cash from the two transactions. Gold’s gain on the purchase of its own bonds exceeded its loss on the sale of the Iron bonds. Gold should report the

a. Net effect of the two transactions as an extraordinary gain.

b. Net effect of the two transactions in income before extraordinary items.

c. Effect of its own bond transaction gain in income before extraordinary items, and report the Iron bond transaction as a loss in income before extraordinary items.

d. Effect of its own bond transaction as an extraordinary gain, and report the Iron bond transaction loss in income before extraordinary items.