On January 1, 2016, Sheffield Co. issued bonds with a face value of $200,000, a term of ten years, and a stated interest rate of 6%. The bonds were issued at 105, and interest is payable each December 31. Sheffield uses the straight-line method to amortize the bond discount. The carrying value of the bonds that would be reported on the December 31, 2019 balance sheet is:
A. $204,000.
B. $200,000.
C. $205,000.
D. $206,000.
