In 2008, Morena Manufacturing issued $180,000 of 20-year bonds at face value. Ten years later, in 2018, the company retired the bonds early by purchasing them in the open market at $181,800. The entry to record this transaction includes a:
A. credit to Cash of $180,000.
B. credit to Gain on Bond Retirement of $1,800.
C. debit to Loss on Bond Retirement of $1,800.
D. debit to Bonds Payable of $181,800.
Answer: C
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