On January 1, 2018, Timothy Corporation acquired as long-term investment $800,000 of 6% bonds, dated January 1. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 7% for bonds of similar risk and maturity. Timothy paid $743,154 for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $745,000. At what amount will Timothy report its investment in the December 31, 2018, balance sheet?

a) $743,154.

b) $745,000.

c) $747,245.

d) $748,926.