In business combination, the fair value of combinee bonds payable was $ 120,000 and the carrying amount of bonds payable was $ 100,000. The journal entry to allocate liquidated company to identifiable assets and liabilities with remainder to goodwill includes:

a.

Debit to discount on bonds payable $ 20,000.

b.

Credit to bonds payable $ 100,000.

c.

Debit to premium on bonds payable $ 20,000.

d.

Credit to bonds payable $ 120,000.