Alpha Corp. owns 100% of Beta Co. Beta has invested in Alpha Bonds with a $1 million face value. Each companys December 31, 2022 balances in connection with these bonds are shown below. Balances on Alphas Books:

Dr. Cr.

interest expense 44,012

unamortized bond discount 17,938

bonds payable 1,000,000

balances on Beta's books

Dr. Cr. investment in bonds 1,000,000

unamortized Bond Premium 18,365

interest income 35,790

The consolidating entry B to eliminate the inter-company debt will include a:

a. Debit to Loss on Extinguishment of Debt of $44,525.

b. Credit to Gain on Extinguishment of Debt of $44,525.

c. none of the above