Exhibit 14-6 Alpha, Inc

Multiple Choice

Exhibit 14-6 Alpha, Inc.issued $100, 000 of its 7% five-year bonds on January 1, 2010, at 98.Interest is paid on January 1 and July 1.The bonds are callable at 103 and straight-line amortization is used.The bonds are recalled on April 1, 2012.
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Refer to Exhibit 14-6.The journal entry to record the reacquisition of the bonds will include a

A) debit to Loss on Bond Redemption for $4, 100
B) credit to Gain on Bond Redemption for $5, 000
C) debit to Discount on Bonds Payable for $1, 100
D) debit to Loss on Bond Redemption for $4, 200