Martinez Corporation issues 2,000, 10-year, 8%, $1,000 bonds dated January 1, 2017, at 98. The journal entry to record the issuance will show a

Select one:

a. credit to Bonds Payable for $2,040,000.

b. credit to Discount on Bonds Payable for $40,000.

c. debit to Cash of $2,000,000.

d. debit to Cash for $1,960,000.