On March 31, 2016, Bundy Company Retired $10,000,000 of Bonds

Multiple Choice

On March 31, 2016, Bundy Company retired $10,000,000 of bonds, which have an unamortized premium of $500,000, by paying bondholders $9,850,000. What is the amount of the gain or loss on the retirement of the bonds?

A) $150,000 loss.
B) $150,000 gain.
C) $650,000 gain.
D) $350,000 loss.