Sun Company, an oil-refining concern, purchased all of its outstanding 8.5% (stated rate) debentures as part of a reconstructing plan. The balance sheet value of each outstanding debenture at the time of the repurchase was $875, and the company paid $957.50 for each $1,000 face value bond. A. What is a debenture? Would such bonds tend to be issued at higher or lower prices than secured bonds? Why? B. Briefly discuss why a company would repurchase its outstanding debt. C. Explain how this repurchase would affect (increase, decrease, or have no effect on) the components of the accounting equation: assets, liabilities, shareholders' equity. Would a gain or loss be recognized on the transaction? D. Would the gain or loss be recognized if Sun Company had not repurchased the bonds? Why or why not?