Company S Is a 100%-Owned Subsidiary of Company P

Multiple Choice

Company S is a 100%-owned subsidiary of Company P.On January 1, 2019, Company S has $200,000 of 8% face rate bonds outstanding, which were issued at face value.The bonds had 5 years to maturity on January 1, 2019.Premiums or discounts would be amortized on a straight-line basis.On that date, Company P purchased the bonds for $198,000.The amount on the consolidated balance sheet relative to the debt is:

A) ​bonds payable $200,000.
B) ​bonds payable $200,000, discount $2,000.
C) ​bonds payable $200,000, discount $1,600.
D) ​The bonds do not appear on the consolidated balance sheet.