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On July 1, 2025, Michigan Company has bonds with balances as shown below. Bonds Payable: a credit balance of $69,000 Premium on Bonds Payable: a credit balance of $4,000 If the company retires the bonds for $69,150, what will be the effect on the income statement? o gain on retirement of $4,150 o loss on retirement of $3,850 o gain on retirement of $3,850 o loss on retirement of $4,150