Carr Corporation Retires Its $300,000 Face Value Bonds at 105

Carr Corporation retires its $300,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $311,235. The entry to record the redemption will include a

A) credit of $11,235 to Loss on Bond Redemption.
B) debit of $11,235 to Premium on Bonds Payable.
C) credit of $3,765 to Gain on Bond Redemption.
D) debit of $15,000 to Premium on Bonds Payable.