Kant Corporation retires its $100,000 face value bonds at 102 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $96,250. The entry to record the redemption will include a:
a. credit of $3,750 to Loss on Bond Redemption.
b. debit of $96,250 to Bonds Payable.
c. debit of $5,750 to Gain on Bond Redemption.
d. debit of $3,750 to Bonds Payable.