On 31 December 2013, Peterson Sales Has a Debentures Payable

On 31 December 2013, Peterson Sales has a debentures payable balance of $40 000 and a premium on debentures payable of $900. On the balance sheet, how will this information be shown?

A) $40 000 less one- tenth of $900 for a net balance of $39 910
B) $40 000 only
C) $40 000 plus a premium of $900 for a net balance of $40 900
D) $40 000 less premium of $900 for a net balance of $39 100