(Answered) On january 1 xyz company issued 8 10 year bonds with a face

Accounting

On January 1, XYZ Company issued 8%, 10 year Bonds with a Face Value of $680,000 at 97. Four years later, XYZ redeemed these bonds by repurchasing them at 98(Amortization of discount/premium has been recorded up to date). The journal entry recorded by XYZ on the date of redemption would include a:

a. Debit to Loss on Redemption of Bonds $13,600

b. Debit to Loss on Redemption of Bonds $6,800

c. Credit to Gain on Redemption of Bonds $5,440

d. Credit to Gain on Redemption of Bonds $1,360

Please explain how you determined your answer.

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