Question:Gester Corporation retires its $100,000 face value bonds at 105 on January 1, following the payment of semiannual interest. The carrying value of the bonds at the redemption date is $103,745. The entry to record the redemption will include a: 

A credit of $3,745 to Loss on Bond Redemption. 

B debit of $3,745 to Premium on Bonds Payable. 

C credit of $1,255 to Gain on Bond Redemption. 

D debit of $5,000 to Premium on Bonds Payable. 

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