Detailed Answer
Correct answer: (A)
$3336
[1/1/09:
Investment - Dr:100,000
Discount - Cr: 5,000
Cash - Cr: 95,000
6/30/09:
Cash(.06/2)x(100k) - Dr: 3,000
Discount(plug) - Dr: 325
Interest Revenue(.07/2)x(100k-5k) - Cr: 3,325
12/31/09:
Cash(06/2)x(100k) - Dr: 3,000
Discount(plug) - Dr: 336
Interest Revenue(.07/2)x(100k-5k+325) - Cr: 3,336]