Carr Corporation retires its $500,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $518, 725. The entry to record the redemption will include a credit of $18, 725 to Loss on Bond Redemption. debit of $18, 725 to Premium on Bond payable. credit of $6, 275 to Gain on Bond Redemption. debit of $25,000 to Premium on Bonds Payable. When a corporation sells treasury stock below its cost. It usually debits the difference between cost and selling price to paid-in Capital from Treasury Stock. True False Direct costs incurred to sell stock such as underwriting, costs should be accounted for as. a reduction of additional paid-in capital, an expense of the period in which the stock is issued. an intangible asset. 1 2 3 1 or 3