On July 1, 2017, immediately after recording interest payments, Salsa, Inc. retired one fifth of its $500,000 of bonds payable for $97,500. The bonds were originally issued at par value in 2012. Which of the following statements is correct? Select one: A. A gain of $2,500 will be reported on the income statement. B. A gain of $402,500 will be reported on the income statement. C. A loss of $2,500 will be reported on the income statement. D. Stockholders' equity is not affected by the bond retirement