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Vaughn Manufacturing retires its bonds at 105 on January 1, following the payment of annual...

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Accounting

Vaughn Manufacturing retires its bonds at 105 on January 1, following the payment of annual interest. The face value of the bonds is $720000. The carrying value of the bonds at the redemption date is $745200. The entry to record the redemption will include a
credit of $10800 to Gain on Bond Redemption.
debit of $25200 to Premium on Bonds Payable.
debit of $36000 to Premium on Bonds Payable.
credit of $25200 to Loss on Bond Redemption.
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