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On its December 31, 2020 balance sheet, Sheridan Company reported bonds payable of $5940000. The bonds had been issued at par. On January 2, 2021,

On its December 31, 2020 balance sheet, Sheridan Company reported bonds payable of $5940000. The bonds had been issued at par. On January 2, 2021, Sheridan retired $2970000 of the outstanding bonds at par plus a call premium of $75000. What amount should Sheridan report in its 2021 income statement as loss on extinguishment of debt (ignore taxes)?

a. $75000

b. $37500

c. $32500

d. $0

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