Assume at the end of the fourth period, Candlestick Inc., having sold its bonds at a premium, retires the bonds at 104 (104% of par value) after paying the annual interest. Assume that the carrying value of the bonds at the redemption date is $100,800 (principal $100,000 and premium $800). Candlesticks journal entries that record the redemption at the end of the fourth interest period include

		Debit loss on bond redemption of $2,600
		Debit loss on bond redemption of 3,200
		Credit gain on bond redemption of $3,200
		Credit gain on bond redemption of $2,600