Johnson, Incorporated acquired 90 percent of Nemec Enterprises on November 1, 20x5. At that date Nemec had inventory with a market value 60000 greater that book value and long-term debt with a market value 15000 less than book value. Inventory has a remaining life of six months and the long-term debt matures in five years. What is the amount of purchase differential amortization is recognized in worksheet elimination number 3 in 20x6?

a. Cost of Goods Sold 20000 debit; Interest Expense 500 debit

b. Cost of Goods Sold 20000 debit; Interest Expense 500 credit

c. Cost of Goods Sold 40000 debit; Interest Expense 3000 debit

d. Cost of Goods Sold 40000 debit; Interest Expense 3000 credit