On January 1, Patterson Inc. issued 5,000,000, 9% bonds for 4,695,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Patterson uses the effective-interest method of amortizing bond discount. At the end of the first year, Patterson should report bonds payable of a. 4,725,500. b. 4,714,500. c. 258,050. d. 4,745,000