On December 31, Year 1, Arnold, Inc., issued $200,000, 8% serial bonds, to be repaid in the amount of $40,000 each year. Interest is payable annually on December 31. The bonds were issued to yield 10% per year. The bond proceeds were $190,280 based on the present values at December 31, Year 1, of the five annual payments: Amounts Due Due Present Value Date Principal Interest at 12/31/Yr 1 12/31/Yr 2 $40,000 $16,000 $ 50,900 12/31/Yr 3 40,000 12,800 43,610 12/31/Yr 4 40,000 9,600 37,250 12/31/Yr 5 40,000 6,400 31,690 12/31/Yr 6 40,000 3,200 26,830 $190,280 Arnold amortizes the bond discount by the interest method. In its December 31, Year 2, balance sheet, at what amount should Arnold report the carrying amount of the bonds? A. $139,380 B. $149,100 C. $150,280 D. $153,308