5) On August 1, 2020, Franklin Inc. acquired $ 120,000 (face value) 10% bonds of Machu Corporation at 102 plus accrued interest. The bonds were dated May 1, 2020, and mature on April 30, 2023, with interest payable each October 31 and April 30. The bonds will be held to maturity. Assuming the amortized cost model is used, the entry to record the purchase of the bonds on August 1, 2020 is A) Bond Investment at Amortized Cost 122,400 Interest Income 3,000 Cash 125,400 B) Bond Investment at Amortized Cost 125,400 Cash 125,400 C) Bond Investment at Amortized Cost 125,400 Interest Income 3,000 Cash 122,400 D) Bond Investment at Amortized Cost 120,000 Premium on Bonds 5,400 125,400