JP Corporation retires its $500,000 face value bonds at 103 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $491,250. The entry to record the redemption will include a

a) credit of $8,750 to Loss on Bond Redemption.

b) credit of $8,750 to Discount on Bonds Payable.

c) debit of $23,750 to Gain on Bond Redemption.

d) debit of $15,000 to Premium on Bonds Payable.