XYZ Inc is going through a reorganization and will do an exchange of its bonds after discussions with lenders. It currently has $169,789 of 10.39% debenture bonds outstanding. These bonds will have their coupon interest adjusted down to 3.97% which is far below the current interest rates. The present value of the future cash payments discounted at the correct market rate today amounts to $157.067. In the journal entry to record this exchange, how much will be debited or credited to the Reorganization Account? O a. $12.404 O b. $13,040 O. $12,722 Od. $11,768 Oe. $12,086