X company is redeeming its bonds before the maturity date for $505,000. All prior interest has been paid prior to the date of redemption. Immediately before the redemption the balances in the accounts are Bonds Payable $500,000; Premium on Bonds Payable $10,000. X will have a: Select one: O a. $5,000 gain on the redemption O b. $5,000 loss on the redemption c. No gain or loss on the redemption O d. Gain of $10,000 on the redemption Aim Corporation issued $500,000 of 10-year bones at a premium. Prior to the maturity date when the carrying value of the bonds is $508,000, the company redeemed the bonds at 101. What is the proper journal entry to record the redemption of the bonds. Select one: a. Dr. Bonds Payable $500,000 Dr. Loss on bond redemption $5,000 Cr Cash $505,000 O b. Dr. Bonds Payable $500,000 Dr. Premium on Bonds $8,000 Cr. Cash $505,000 and Cr. Gain on bond reemption $3,000 O c. Dr. Bonds payable $508,000 Cr. Cash $508,000 O d. Dr. Bonds payable $505,000 Cr. Cash $505,000