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McMahon Corporation issued $350, 000 of 6.0% 10-year bonds. The bonds are dated and sold on January 1, 2015. Interest payment dates are January 1 and July 1. The bonds are issued for $325,128 to yield the market interest rate of 7%. On the first semiannual interest payment date. July 1, 2015, the company recorded $11,379 in interest expense and $879 in discount amortization. The interest payment is $10,500. Using the effective-interest method, what is the carrying amount of the bonds on the January 1, 2016 balance sheet? A. $325,128 B. $350, 000 C. $326,007 D. $326,917