A parent company acquires a subsidiary on January 1, 2017. The subsidiary's bonds payable (five-year remaining life) are undervalued by $5,000 at the date of acquisition. Straight-line amortize the premium/discount, and directly adjust bonds payable for premium/discount amortization. On the consolidation working paper prepared at December 31, 2018 (two years later), eliminating entry (R) includes:

Select one:

A. A debit to interest expense of $1,000.

B. A debit to bonds payable of $5,000.

C. A credit to interest expense of $1,000.

D. A credit to bonds payable of $4,000.