7. At December 31, 2021 the following balances existed on the books of Palest Corporation: are as follows: Bonds Payable $4,000,000 Unamortized discount on Bonds Payable 320,000 2356,000 -2500,000 Interest Payable 100,000 +224,000 Assume that 70% of the bonds are retired on January 1, 2022, at 102. The entry to record the early retirement of bonds would include: a. a debit to Loss on redemption for $360,000. b. a credit to gain on redemption for $280,000. C. a debit to Loss on redemption for $360,000. d. a debit to Loss on redemption for $400,000. 2 3 3.