Melon Company issues $1,120,000 of its 14%, 10-year bonds at 96 on February 28, Year 1. The bonds pay interest on February 28 and August 31. Assume that Melon uses the straight-line method for amortization. What net amount will be reported for the bonds on the August 31, Year 1 balance sheet? O $1,120,000 $1,072,960 O $1,077,440 O $1,075,200