Pan Corporation Owns 65 Percent of Sauce Corporation's Voting Shares

Pan Corporation owns 65 percent of Sauce Corporation's voting shares.On January 1,20X3,Pan Corporation sold $300,000 par value 7 percent bonds to Sauce when the market interest rate was 4 percent.The bonds mature in 15 years and pay interest semiannually on June 30 and December 31.
-Based on the information given above,what amount of investment in bonds will be eliminated in the preparation of the 20X3 consolidated financial statements?

A) $257,248
B) $300,000
C) $395,766
D) $400,784