Nickel Inc. bought $500,000 of 3-year, 7% bonds as an investment on December 31, 2012 for $535,000. Nickel uses straight-line amortization. On May 1, 2013, $100,000 of the bonds were redeemed at 114.

Nickel Inc. bought $500,000 of 3-year, 7% bonds as an investment on December 31, 2012 for $535,000. Nickel uses straight-line amortization. On May 1, 2013, $100,000 of the bonds were redeemed at 114. How much, and what type of gain or loss, most likely results from this redemption? (Do not round your intermediate calculation.)

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