On October 1, 2017 Sunland Company issued 6%, 10-year bonds with a face value of $7970000 at 105. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis.

The entry to record the issuance of the bonds would include a:

a.credit of $7571500 to Bonds Payable.

b.debit of $398500 to Discount on Bonds Payable.

c.credit of $239100 to Interest Payable.

d.credit of $398500 to Premium on Bonds Payable.