Cedar Co Purchased 120, 6% LKN Company Bonds for $120,000 Cash

Multiple Choice

Cedar Co. purchased 120, 6% LKN Company bonds for $120,000 cash. Interest is payable semiannually on July 1 and January 1. If 60 of the securities are sold July 1 for $61,500 the entry would include a credit to Gain on Sale of Debt Investments of

A) $1,000.
B) $1,800.
C) $3,600.
D) $1,500.