A Corporation Called an Outstanding Bond Obligation Four Years Before

A corporation called an outstanding bond obligation four years before maturity. At that time there was an unamortized discount of $750,000. To extinguish this debt, the company had to pay a call premium of $250,000. Ignoring income tax considerations, how should these amounts be treated for accounting purposes?

A) Amortize $1,000,000 over four years.
B) Charge $1,000,000 to a loss in the year of extinguishment.
C) Charge $250,000 to a loss in the year of extinguishment and amortize $750,000 over four years.
D) Either amortize $1,000,000 over four years or charge $1,000,000 to a loss immediately, whichever management selects.