12. Carr Corporation retires its $500,000 face value bonds at 105 on January 1 , following the payment of interest. The carrying value of the bonds at the redemption date is $518,725. The entryto record the redemption will include a a. credit of $18,725 to Loss on Bond Redemption. b. debit of $18,725 to Premium on Bonds Payable. c. credit of $6,275 to Gain on Bond Redemption. d. debit of $25,000 to Premium on Bonds Payable