Philosophy Insights Corporation retires its $500,000 face-value bonds at 102 on January 1, after interest is paid. The bonds carrying value at the date of retirement is $481,250. What should the entry to record the redemption include?

$10,000 debit to premium on bonds payable

$18,750 credit to discount on bonds payable

$18,750 credit to loss on bond redemption

$28,750 debit to gain on bond redemption