Bonds payable with face value of \(\$ 300,000\) and carrying amount of \(\$ 288,000\) are retired before their scheduled maturity with a cash outlay of \(\$ 292,000\). Which of the following entries correctly records this bond retirement? (p.653)

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a. Bonds Payable....... Discount on Bonds Payable 300,000 12,000 Cash........... 292,000 Extraordinary Gain....... 20,000 b. Bonds Payable.......... 300,000 Extraordinary Loss 4,000 Discount on Bonds Payable...... 12,000 Cash........ 292,000 c. Bonds Payable...... 300,000 Discount on Bonds Payable...... 6,000 Cash........ 292,000 Extraordinary Gain....... 2,000 d. Bonds Payable......... 288,000 Discount on Bonds Payable: 12,000 Extraordinary Gain.......... 8,000 Cash........ 292,000