On January 1, Daisey Duke Inc. issued

$1,000,000, 9% bonds for $939,000. 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. (Ee), $51,610.

(b) $57,100.

(d) $51,000.