On December 1, 2021, Sheffield Corp. issued 700 of its 7%, $1,000 bonds at 103. Attached to each bond was one detachable stock warrant entitling the holder to purchase 10 shares of Sheffield's common stock. On December 1, 2021, the market value of the bonds, without the stock warrants, was 95, and the market value of each stock purchase warrant was $50. The amount of the proceeds from the issuance that should be accounted for as the initial carrying value of the bonds payable would be?

A. $721000

B. $677740

C. $684950

D. $700000