Stine Co Purchased 80, 6% Kolaw Company Bonds for $80,000 Cash

Stine Co. purchased 80, 6% Kolaw Company bonds for $80,000 cash. Interest is payable semiannually on July 1 and January 1. If 40 of the securities are sold on March 1 for $42,000 plus accured interest the entry would include a credit to Gain on Sale of Debt Investments for

A) $1,200.
B) $800.
C) $2,800.
D) $2,000.