Kant Corporation retires its \(\$ 100,000\) face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is \(\$ 103,745\). The entry to record the redemption will include a:

(a) credit of \(\$ 3,745\) to Loss on Bond Redemption.

(b) debit of \(\$ 3,745\) to Premium on Bonds Payable.

(c) credit of \(\$ 1,255\) to Gain on Bond Redemption.

(d) debit of \(\$ 5,000\) to Premium on Bonds Payable.