On January 1, 2016, Lopez Company issued its 10% bonds in the face amount of $2,000,000 which mature on January 1, 2026. The bonds were issued for $2,270,000 to yield 8%, resulting in a bond premium of $270,000. Lopez uses the effective interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2016, Lopezs unamortized premium should be:

a. $203,000. b. $243,000. c. $251,600. d. $270,000.