XYZ Inc is going through a reorganization and will do an exchange of its bonds after discussions with lenders. It currently has $187,738 of 11.11% debenture bonds outstanding. These bonds will have their coupon interest adjusted down to 4.33%, 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 $173,678. In the journal entry to record this exchange, how much will be debited or credited to the Reorganization Account?

a. $13,006

b. $13,357

c. $13,709

d. $14,412

e. $14,060