Safety First Corporation Has Just Made the Interest Payment on Its

Safety First Corporation has just made the interest payment on its $4,000,000 of outstanding bonds.The bonds are callable at 101.625 and the unamortized premium is currently $167,400.The entry to call in one half of the bonds would include a:

A) credit to Cash for $2,000,000
B) debit to Premium on Bonds Payable for $167,400
C) credit to Gain on Retirement of Bonds Payable for $51,200
D) debit to Loss on Retirement of Bonds Payable for $51,200