At the beginning of the year, a U.S. company invests in a $10,000,000 face value 4% coupon corporate bond, and pays $9,727,675, a price that yields 5%. Interest is paid at the end of the year. The bond is classified as held-to-maturity. At the end of the year, the company estimates that the investment has expected future credit losses of $800,000.

At what net amount is the investment reported on the companys end-of-year balance sheet?

a. $8,927,675

b. $9,200,000

c. $9,814,059

d. $9,014,059