Carr Corporation Retires Its $100,000 Face Value Bonds at 105

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

A) credit of $3,745 to Loss on Bond Redemption.
B) debit of $103,745 to Bonds Payable.
C) credit of $1,255 to Gain on Bond Redemption.
D) debit of $3,745 to Bonds Payable.