At the Reporting Date,June 30 20X7,the Effect of the Adjustments

At the reporting date,June 30 20X7,the effect of the adjustments to record the interest of Midstream Ltd in the joint venture would be:

A) Debit Deferred Exploration Expenditure $2,650,000, Credit Interest Revenue $150,000, Credit Investment in Joint Venture $2,500,000.
B) Debit Deferred Exploration Expenditure $2,650,000, Debit Cash $1,000,000, Debit Plant and Equipment $2,500,000, Credit Accumulated Depreciation - Plant $500,000, Credit Sundry Liabilities $500,000, Credit Interest Revenue $150,000 and Credit Investment in Joint Venture $5,000,000.
C) Debit Exploration Expense $2,650,000, Credit Interest Revenue $150,000 and credit Investment in Joint Venture $2,500,000.
D) None of the above.