On July 1, 2017, Miniature Company has bonds with balances as shown below.

Bonds Payable

	65,000

Discount on Bonds Payable

4,200

If the company retires the bonds for $74,150, what will be the effect on the income statement?

A) loss on retirement of $13,350

b) no effect on net income

c) gain on retirement of $13,350

d) sales revenue of $60,800