On January 1, Besalius Inc. issued $1,000,000, 9% bonds for $938,554. The market rate of interest for

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On January 1, Besalius Inc. issued $1,000,000, 9%

bonds for $938,554. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Besalius uses the effective-interest method of amortizing bond discount. At the end of the first year, Besalius should report unamortized bond discount of:

(a) $54,900.

(c) $51,610.

(b) $57,591.

(d) $51,000.

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