On January $1,20$X$1,$ Henefer Company issued a $$10,000,10\%,20-$year bond. Interest is paid annually each December $31,$ so the first coupon payment was made on December $31$ of Year $1.$ On the day the bond was issued, the market interest rate on bonds with the same degree of riskiness was $12\%$ compounded annually. This bond was retired on January $1,20$X$3,$ just one day after the SECOND coupon payment was made. The total amount paid to retire this bond was $$9,700.$ Henefer uses the effective$-$interest method on its books. Which one of the following should be included in the journal entry necessary to record the RETIREMENT OF THIS BOND on January $1,20$X$3,$ just one day after the SECOND coupon payment was made? Note: Round all calculations to the nearest dollar.

DEBIT to Loss on Bond Retirement of $$1,150$

DEBIT to Loss on Bond Retirement of $$1,450$

DEBIT to Discount on Bonds of $$1,550$

CREDIT to Discount on Bonds of $$1,650$