On January 1, 20X4, J-Bar Implements Corp. bought $1,250,000 of 5% bonds from Transnational Group. The bonds pay interest semi-annually on June 30 and December 31. The market rate of interest on January 1, 20X4, was 4%. The company intends to hold on to the bonds up to their December 31, 20X8, maturity date to collect all of the contractual cash flows. At what amount will J-Bar Implements report the bonds on January 1, 20X4?

a) $1,250,000

b) $1,295,784

c) $1,305,648

d) $1,306,141