Hulse Corporation Retires Its $800,000 Face Value Bonds at 105

Multiple Choice

Hulse Corporation retires its $800,000 face value bonds at 105 on January 1, following the payment of annual interest.The carrying value of the bonds at the redemption date is $829,960.The entry to record the redemption will include a

A) credit of $29,960 to Loss on Bond Redemption.
B) debit of $29,960 to Premium on Bonds Payable.
C) credit of $10,040 to Gain on Bond Redemption.
D) debit of $40,000 to Premium on Bonds Payable.