Boling,Inc

Multiple Choice

Boling,Inc.,just made the interest payment on its $4,000,000 of outstanding bonds.The bonds are callable at 101 5/8 and the unamortized premium is currently $167,400.The entry to retire half of the bonds would include a

A) debit to premium on bonds payable for $167,400.
B) credit to cash for $2,000,000.
C) credit to gain on early extinguishment of debt for $51,200.
D) debit to loss on early extinguishment of debt for $52,500.
E) debit to loss on early extinguishments of debt for $167,400.