The Viper retires a $49.3 million bond issue when the carrying value of the bonds is $53.1 million, but the market value of the bonds is $46.4 million. The entry to record the retirement will include:

multiple choice-

• A debit of $6.7 million to a loss account.

• No gain or loss on retirement.

• A credit to cash for $53.1 million.

• A credit of $6.7 million to a gain account.