On January 1, Parson Freight Company issues 9.0%, 10-year bonds with a par value of $2,900,000. The bonds pay interest semiannually. The market rate of interest is 10.0% and the bond selling price was $2,702,942. The bond issuance should be recorded as:

a) Debit Cash $2,900,000; credit Bonds Payable $2,900,000. b) Debit Cash $2,702,942; credit Bonds Payable $2,702,942. c)Debit Cash $2,900,000; credit Bonds Payable $2,702,942; credit Discount on Bonds Payable $197,058. d) Debit Cash $2,702,942; debit Discount on Bonds Payable $197,058; credit Bonds Payable $2,900,000. e) Debit Cash $2,702,942; debit Interest Expense $197,058; credit Bonds Payable $2,900,000.