Lahey Corporation Retires Its $800,000 Face Value Bonds at 105

Lahey Corporation retires its $800,000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $829,960. The entry to record the redemption will include a
A) credit of $10,040 to Loss on Bond Redemption.
B) debit of $10,040 to Premium on Bonds Payable.
C) credit of $10,040 to Loss on Bond Redemption.
D) debit of $40,000 to Premium on Bonds Payable.