On January $1,$ Year $1,$ Sheffield Company issued bonds with a face value of $$420,000,$ a term of ten years, and a stated interest rate of $7\%.$ The bonds

were issued at $106,$ and interest is payable each December $31.$ Sheffield uses the straight$-$line method to amortize bond discounts and premiums. What is

the carrying value of the bonds at December $31,$ Year $4?$

Multiple Choice

$$430,080$

$$432,600$

$$420,000$

$$435,120$