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| Ray Finance, Inc. issued a 10-year, $100,000, 9% note on January 1, year 1 . The note was issued to yield 10% for proceeds of $93,770. Ray did not elect the fair value option to report financial liabilities. Interest is payable semiannually. The note is callable after 2 years at a price of $96,000. Due to a decline in the market rate to 8%, Ray retired the note on December 31, year 6. On that date, the carrying amount of the note was $94,582, and the discounted market rate was $105,280. What amount should Ray report as gain (loss) from retirement of the note for the year ended December 31, year 6? A. $ 9,280 B. $(1,418) C. $ 4,000 D. $(2,230) |