Master Corporation Owns 85 Percent of Servant Corporation's Voting Shares

Master Corporation owns 85 percent of Servant Corporation's voting shares. On January 1, 20X8, Master Corporation sold $200,000 par value 8 percent bonds to Servant when the market interest rate was 5 percent. The bonds mature in 10 years and pay interest semiannually on June 30 and Dec 31.
Based on the information given above, in the preparation of the 20X8 consolidated financial statements, premium on bonds payable will be:

A) debited for $46,767 in the eliminating entries.
B) credited for $43,060 in the eliminating entries.
C) debited for $43,060 in the eliminating entries.
D) credited for $46,767 in the eliminating entries.