Pharma Inc

Pharma Inc., issued $800,000 of 7.5%, 15- year bonds dated April 1, 2008 on April 1, 2008, at 97 ½. If Pharma Inc., uses the straight- line method of amortization, the entry to retire the bonds on the maturity date would include a:

A) credit to Cash for $800,000.
B) debit to Premium on Bonds Payable for $20,000.
C) debit to Bonds Payable for $780,000.
D) credit to Discount on Bonds Payable for $20,000.