Kelly Industries needs to raise capital for expansion purposes. Management is considering issuing $1,000,000 of 7.5\% 20-year bonds dated June 1, 20X1 with interest payment dates of December 1 and June 1. Kelly's yearend is December 31. Assuming the bonds were issued on June 1, 20X1 at 104 7/8 and the company used the straight-line method of amortization, the semiannual interest payment entry on December 1, 20X1 would include a A. credit to cash for $37,500.00 B. credit to interest expense for $36,281.25 C. credit to discount for $203.13 D. credit to interest expense for $38,718.75 E. credit to premium for $1,218.75