XYZ Inc is going through a reorganization and will do an exchange of its bonds after discussions with lenders. It currently has $139,874 of 9.19% debenture bonds outstanding. These bonds will have their coupon interest adjusted down to 3.37%, 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 $129,382. In the journal entry to record this exchange, how much will be debited or credited to the Reorganization Account? a. $11,017 b. $11,541 c. $11,279 d. $10,754 e. $10,492