Hudson Corporation Retires Its Bonds at 106 on January 1

Multiple Choice

Hudson Corporation retires its bonds at 106 on January 1. The face value of the bonds is $600,000. The carrying value of the bonds at retirement is $619,500. The entry to record the retirement will include a:

A) debit of $36,000 to Premium on Bonds Payable.
B) debit of $19,500 to Premium on Bonds Payable.
C) credit of $19,500 to Gain on Retirement of Bonds.
D) credit of $19,500 to Loss on Retirement of Bonds.