Question -  The December 31, 2017, statement of financial position of Cotton Corporation includes the following:

9% bonds payable due December 31, 2023                           $718,900

The bonds have a face value of $700,000, and were issued on December 31, 2016, at 103, with interest payable on July 1 and December 31 of each year. Cotton uses straight-line amortization to amortize bond premium or discount. On March 1, 2018, Cotton retired $280,000 of these bonds at 98 plus accrued interest. Ignoring income taxes, what should Cotton record as a gain on retirement of these bonds?

a) $ 7,560

b) $13,020

c) $13,160

d) $14,000