On 15 October 2016,Rural Sales Has a Debenture with Balances $\begin{array}{c|r}{\text { Debentures payable }} \\\hline & 80000\end{array}\quad\quad$

Multiple Choice

On 15 October 2016,Rural Sales has a debenture with balances as shown below. $\begin{array}{c|r}{\text { Debentures payable }} \\\hline & 80000\end{array}\quad\quad$$\begin{array}{l}\text { Premium on debentures }\\\begin{array}{lll|l}\hline 4600&&&&&& \\\end{array}\end{array}$ If Rural Sales wishes to redeem the debentures for $82 000,what will be the effect on the income statement?

A) Loss on redemption of $2 600
B) Loss on redemption of $2 000
C) Gain on redemption of $2 600
D) Gain on redemption of $2 000