On January 1, 2020, Jeep Corp. issued $ 2,000,000, 5% bonds, which mature on January 1, 2027. The bonds were issued for $2,120,045 to yield 4%. Jeep uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2020, the adjusted balance in the Bonds Payable account should be

Select one:

a. $ 2,104,847

b. $ 2,120,045

c. $ 2,135,243

d. $ 2,000,000