Mazzeo Company Acquires 80 Dodd's 10%, 5 Year, $1,000 Bonds

Multiple Choice

Mazzeo Company acquires 80 Dodd's 10%, 5 year, $1,000 bonds on January 1, 2014 for $80,000. Assume Dodd's pays interest semiannually and the July 1 entry was done correctly. Mazzeo's journal entry at December 31, 2014 would include a credit to

A) Interest Receivable for $4,000.
B) Interest Revenue for $8,000.
C) Interest Expense for $8,000.
D) Interest Revenue for $4,000.