55. RKO Company sold bonds with a face value of $850,000 for $910,000. The bonds have a coupon rate of 8 percent, mature in 10 years, and pay interest annually every December 31. All of the bonds were sold on January 1 of this year. RKO uses the effective-interest amortization method. Assume an annual market rate of interest of 7 percent. The amount of the book value for bonds payable that would be reported on the December 31, 2006 balance sheet is: A) S910,000. B) $842,000. C) S904,000. D) S905,700. E) None of the above is correct