On January $1,2024,$ following an interest payment, Krusty Krab Inc. calls one of its bond issues.

Krusty Krab Inc. provides the following information relating to this bond on the date it is called:

The entry to record the redemption will include

a debit of $$16,000$ to Discount on Bonds Payable.

a credit of $$16,000$ to Discount on Bonds Payable.

a debit of $$5,260$ to Loss on Bond Redemption.

a credit of $$5,260$ to Loss on Bond Redemption.