Music City Paid $37,800 Plus a Broker's Fee of $525

Music City paid $37,800 plus a broker's fee of $525 to acquire 8% Airport Corp bonds with a $40,000 maturity value. Music City intends to hold the bonds to maturity. Thejournal entry to record acquisition of the bonds includes a debit to Long-Term Investment in Airport Bonds for:

A) $38,325.
B) $37,800.
C) $41,525.
D) $40,000.
E) $40,525.