Hoffman Corporation Retires Its Bonds at 106 on January 1

Hoffman Corporation retires its bonds at 106 on January 1, following the payment of semi-annual interest. The face value of the bonds is $1,000,000. The carrying value of the bonds at the redemption date is $1,049,500. The entry to record the redemption will include a

A) credit of $49,500 to Loss on Bond Redemption.
B) debit of $1,060,000 to Bonds Payable.
C) credit of $10,500 to Gain on Bond Redemption.
D) debit of $1,049,500 to Bonds Payable.