When callable bonds are redeemed below carrying value,

A) Gain on Redemption of Bonds is credited
B) Loss on Redemption of Bonds is debited
C) Retained Earnings is credited
D) Retained Earnings is debited

Callable Bonds

A type of bond that can be redeemed by the issuer before its maturity date.

Carrying Value

Carrying value is the book value of an asset or liability on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.