Basil Company issued

$ 650 comma 000$650,000,

66%,

5minusyear

bonds for

108108,

with interest paid annually. Assuming

straightminusline

amortization, what is the carrying value of the bonds after one year?

A.

$ 702 comma 000$702,000

B.

$ 689 comma 000$689,000

C.

$ 691 comma 600$691,600

D.

$ 650 comma 000