Alabama Pride Retired $100,000 of Bonds with a Carrying Value

Alabama Pride retired $100,000 of bonds with a carrying value of $98,000 for $99,500. Bond interest had just been paid on the bonds. Alabama Pride should record a

A) a credit to cash for $100,000.
B) a debit to Discount on Bonds Payable for $2,000.
C) a credit to Discount on Bonds Payable for $1,500.
D) a debit to Bonds Payable for $980,000.
E) loss of $1,500.