On January 1 of 2015, Parson Freight Company issues 7.0%, 10-year bonds with a par value of $4,000,000. The bonds pay interest semi-annually. The market rate of interest is 8.0% and the bond selling price was $3,728,197. The bond issuance should be recorded as:

Options:

A) Debit Cash $4,000,000; credit Bonds Payable $3,728,197; credit Discount on Bonds Payable $271,803.

B) Debit Cash $3,728,197; debit Interest Expense $271,803; credit Bonds Payable $4,000,000.

C) Debit Cash $3,728,197; credit Bonds Payable $3,728,197.

D) Debit Cash $4,000,000; credit Bonds Payable $4,000,000.

E) Debit Cash $3,728,197; debit Discount on Bonds Payable $271,803; credit Bonds Payable $4,000,000.