On January 1, Daisey Duke Inc. issued \(\$ 1,000,000\), 10 -year, \(9 \%\) bonds for \(\$ 938,554\). The market rate of interest for these bonds is \(10 \%\). Interest is payable annually on December 31.

Daisey Duke uses the effective-interest method of amortizing bond discount. At the end of the first year, Daisey Duke should report unamortized bond discount of:

(a) \(\$ 54,900\)

(c) \(\$ 51,610\).

(b) \(\$ 57,590\)

(d) \(\$ 51,000\).