On January 1, 2018, Karma Corp. issued $300,000, 4.5%, 10-year bond. At the time of issuance, the the rate of return of similar investments was 3%. The semi-annual interest is paid on June 30 and December 31. In recording the issuance of the bond, Karma Corp. should:(Round up your calculations to the closest integer; meaning no decimals)

A.

debit Cash for $300,000.

B.

debit Discount on Bonds payable for $36,959.

C.

credit Premium on Bonds Payable for $38,629

D.

credit Bonds Payable for $$336,629