please explain with a journal entry

On March 1, Year 1, Somar Co. issued 20-year bonds at a discount. By September 1, Year 5, the bonds were quoted at 106 when Somar exercised its right to retire the bonds at 105. How should Somar report the bond retirement on its Year 5 income statement? ) A. Again in continuing operations. (48%) () B. Aloss in continuing operations. (39%) O C. Again in discontinued operations. (6%) ) D. Aloss in discontinued operations. (4%) CV = Canying value Ouworld Bonds are issued and retired as part of financing ongoing operations. An issuer may choose to retire its outstanding bonds when interest rates change or if it has excess cash reserves. When a bond is redeemed prior to maturity, the difference between its carrying value (CV) and the amount paid is reported as a gain or loss on the issuer's income statement as part of continuing operations. A bond's price is expressed in terms of the percentage of its face value (ie, face). When bonds are issued at a discount, the price is less than 100 (ie, par value) and the CV is less than face. Conversely, bonds with prices greater than 100 are priced at a premium. In this scenario, Somar Co. issued bonds at a discount (for example 98% of face) in Year 1. The CV of the bonds is less than face value. In Year 5, Somar retired the bonds at 105 (105% of face). Since Somar paid more to retire the bonds than the CY, it will record a /oss on bond retirement in its income from continuing operations (Choice A). (Choices C and D) Discontinued operations on the income statement is used when an entity disposes of a portion of its business, not a single holding or liability. Things to remember: When a bond is redeemed prior to maturity, the difference between its carrying value and the amount paid is reported as a gain or loss on the issuer's income statement as part of continuing