On January 1, Besalius issued 1,000,000, 9% bonds for 938,554. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Besalius uses the effective-interest method of amortizing bond discount. At the end of the first year, Besalius should report unamortized bond discount of:

a. 54,900.

c. 51,610.

b. 57,591.

d. 51,000.