Harrison Company issued $600,000 of 10%, 20-year bonds on January 1, 2020. Interest is paid semiannually on July 1 and December 31 each year. Harrison Company uses the straight-line method of amortization for bond premium or discount.

A. Assume the bonds are issued at 103.

C. Assume the bonds are issued at 98.

D. After the first two interest payments, what is the difference in carrying value of the bonds under the assumptions A and C. (2 points)