A company calls its bonds at a price of $105,000. The face value is $100,000 and the carrying value of the bonds at the retirement date is $103,745. The issuer's journal entry to record the retirement will include a:

A. Credit to Gain on Bond Retirement.
B. Debit to Premium on Bonds.
C. Credit to Premium on Bonds.
D. Debit to Discount on Bonds.
E. Credit to Bonds Payable.


Answer: B

Business

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