General Investment Co GIC Sells the Bonds for $196,000 Immediately After the Interest

Short Answer

General Investment Co.(GIC)purchased bonds on January 1,2012.GIC's accountant has projected the following amortization schedule from purchase until maturity:
$\begin{array}{rrrrr}& \text { Cash } & \text { Interest } & \text { Increase in } & \text { Carrying } \\\text { Date } & \text { Paid } & \text { Expense } & \text { Carrying Value } & \text { Value } \\1 / 1 / 12 & & & & \$ 194,758\\6 / 30 / 12 & \$ 7,000 & \$ 7,790 & \$ 790 & 195,548 \\12 / 31 / 12 & 7,000 & 7,822 & 822 & 196,370 \\6 / 30 / 13 & 7,000 & 7,855 & 855 & 197,225 \\12 / 31 / 13 & 7,000 & 7,889 & 889 & 198,114 \\6 / 30 / 14 & 7,000 & 7,925 & 925 & 199,039 \\12 / 31 / 14 & 7,000 & 7,961 & 961 & \$ 200,000\end{array}$
GIC sells the bonds for $196,000 immediately after the interest payment on 12/31/12.What gain or loss,if any,would GIC record on this date?
A)No gain or loss.
B)$370 loss.
C)$4,000 loss.
D)$4,000 gain.