96. Kant Corporation retires its $500,000 face value bonds at 102 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $481,250. Kant's entry to record the redemption will include a credit of $18,750 to Loss on Bond Redemption. b. credit of $18,750 to Discount on Bonds Payable. debit of $28,750 to Gain on Bond Redemption. c. d. debit of $10,000 to Premium on Bonds Payable. Ans: B, LO: 2, Bloom: AP, Difficulty: Moderate, Min: 3, AACSB: Knowledge, AICPA BC: None, AICPA AC: Measurement Analysis and Interpretation, AICPA PC: None, IMA: Reporting & Control: Financial Recordkeeping, IFRS: None Solution: $500,000 - $481,250 = $18,750 discount.