In 2005, Bell Inc. sold 20-year callable bonds with a face value of $1,000,000 to investors at a discount. In 2022, Bell decided to exercise its option to call the bonds at a price of 104. At the time of the buyback the discount account related to these bonds has a balance of $8,500. The journal entry to record the buyback of the bonds would include

Group of answer choices

Gain of $48,500

Loss of $48,500

Loss of $40,000

Gain of $40,000