On January 1, 2015, a company issues 5-year bonds with a stated interest rate of 8% and records the following journal entry:

Dr. Cash $480,000

Dr. Discount on Bonds Payable $20,000

Cr. Bonds payable $500,000

The bonds pay interest annually, on December 31, which is when the company's fiscal year ends.

The journal entry made on January 1, 2020, when the bonds mature will include:

	a.	A debit to loss on retirement of bonds of $20,000.
	b.	A credit to gain on retirement of bonds of $20,000.
	c.	A debit to Bonds payable for $480,000.
	d.	A credit to cash for $500,000.