Hulse Corporation Retires Its $600,000 Face Value Bonds at 105

Multiple Choice

Hulse Corporation retires its $600,000 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 $622,470. The entry to record the redemption will include a

A) credit of $22,470 to Loss on Bond Redemption.
B) debit of $22,470 to Premium on Bonds Payable.
C) credit of $7,530 to Gain on Bond Redemption.
D) debit of $30,000 to Premium on Bonds Payable.